AMI: Government needs to do more

The Association of Mortgage Intermediaries (AMI) has called on the government to help consumers in the housing market.

It comes following the Bank of England's decision to keep interest rates at 0.5 per cent.

AMI suggested the Bank has attempted to steady the ship ahead of the Budget announcement, which is due in two week's time.

"However, many people already have higher loan-to-value mortgages, a difficult credit history or too small a deposit," said AMI director Robert Sinclair, adding these people still face financial difficulties.

Mr Sinclair called on the chancellor to steer the UK mortgage market to safer waters and help the "thousands" of homeowners suffering from a lack of liquidity in the sector.

AMI exists to support professional mortgage intermediaries by lobbying the treasury, Financial Services Authority, government and other policymakers.

The Council of Mortgage Lenders recently warned that the Bank's figures showing an increase in lending in February should be taken with a pinch of salt and that any talk of a market recovery should be put on hold until a definite trend is noticed.