Mortgage lending could fail to hit target this year
News Category: Industry News
Published: 28-Jul-2010
The Association of Mortgage Intermediaries has warned that mortgage lending this year could fail to meet its previous forecast of £150bn.
The AMI has also aired concerns over the planned withdrawal of the Special Liquidity Scheme next April and the effect this will have on lending.
It said that the banking sector faces short-term liquidity issues as it needs £800bn for refinancing in the next 18 months.
Robert Sinclair, director of AMI, said: “All the main banks face challenges to their ability to fund mortgage lending as the Special Liquidity Scheme reaches its repayment phase early next year.
“A practical solution is required that allows a sustainable mortgage market so consumers can look for a property safe in the knowledge that funds might be available.”
He added: “Brokers continue to exert significant influence over the market as customers continue to use them to look across the market. This ensures they have the best chance of getting a mortgage that will allow them to complete on the property they want.”
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