Budget wish-list from mortgage intermediaries

The Association of Mortgage Intermediaries (AMI) is calling on the Chancellor of the Exchequer, Alistair Darling, to support the mortgage market in this week’s Budget.

The Association wants measures that will support first-time buyers, provide additional liquidity in the money markets and review income support payments for homeowners who are finding it difficult to meet their repayments.

Richard Farr, Director of AMI, said: “The mortgage market is going through a turbulent period … lenders have said on the record that they are looking to improve their margins rather than increase market share, so while bank rates have been falling, last week actually saw an increase in the variable rates being charged by some lenders.”

Adding: “We believe the government should provide a boost to the market and support to consumers who will face a difficult period with tens of thousands of people coming off fixed-rate loans in the next year.”

AMI would also like to see changes in Stamp Duty and a review of proposals to reduce Capital Gains Tax, which it believes could encourage short-term buy-to-let landlords over long-term investors.

On issues of funding, AMI is looking for budget measures that could help bring new lenders into the market from outside the UK.

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