More help needed in mortgage market, AMI says

The Association of Mortgage Intermediaries (AMI) has called for greater assistance in the mortgage market.

According to the organisation, the government must consider both supply and demand when devising April`s Budget.

Doing so may enable it to "re-energise" the UK`s mortgage market, it said.

AMI director Robert Sinclair stated: "On the supply side we propose re-inventing mortgage indemnity guarantees, with a focus on consumer benefit. This will help lenders to offer higher loan-to-value mortgages."

He added that, in order to stimulate the demand side, the government should abolish stamp duty on residential properties.

Mr Sinclair went on to advocate the provision of tax-free savings accounts for first-time buyers in order to encourage such people to put money aside for deposits on homes.

Recently, Steve Turner, head of communications at the Home Builders Federation, said that banks should be encouraged to lend more money in the form of mortgages in order to improve the health of the property market.