AMI urges more first-time buyer help

First-time buyers need more help to get on the property ladder, the Association of Mortgage Intermediaries (AMI) has said.

In its Quarterly Economic Bulletin, it commented that such buyers are still being affected by the high deposit levels they are being obliged to find, which is preventing some of them from making a purchase.

It added: “Lenders are now pricing new loans against the cost of retail funding not Base Rate or LIBOR.”

The AMI also predicted that it is “unlikely that we will ever return to pre-recession levels of lending”.

However, the overall amount lent will rise next year, it suggested, increasing from this year’s total of £145 billion to between £150 billion and £170 billion next year.

The number of mortgages issued in August was five per cent down on July, the Council of Mortgage Lenders said.

However, the body noted, this was still a 29 per cent improvement on the same month last year.

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