The Association of Mortgage Intermediaries (AMI) today called on the Bank of England to cut interest rates by 1% to help ease the problems facing the economy as a whole and the mortgage industry in particular.

Mortgage approvals for house purchases have fallen to the lowest level on record, and base rate cuts have yet to make an impact on mortgage rates.
 

The call was issued as AMI released its latest Quarterly Economic Bulletin that sets out its view of the economy, as well as the mortgage and housing markets.
 
"AMI's latest bulletin shows the continuing and urgent need for a public policy response to a turbulent housing market.  While there has been significant activity to maintain our banking system, the actions have yet to work their way into the mortgage market.  As a start, we urge the Bank of England to cut interest rates by 1%,” said Chris Cummings, Director General, AMI.

"We continue to meet with the Treasury, Bank of England, Financial Services Authority and Sir James Crosby to set out our case for decisive action.  We have also spoken to all of the political parties, as we believe that political impetus needs to be brought to bear if we are to stop this economic crisis doing permanent damage to the home-owning public and to our mortgage industry."

---

Tag this article :