Monetary policymakers should be following the Crosby Report's recommendation to restart the mortgage finance markets rather than focusing on cutting interest rates, according to the Association of Mortgage Intermediaries (AMI).
Despite the Bank of England's base rate hitting an all-time low of 2% yesterday, some sections of the mortgage industry are worried the move will have little impact if banks do not have money to lend. AMI's director general, Chris Cummings, has welcomed the rate cut, but said more needs to be done to improve the flow of finance for consumers and businesses. While interest rates have fallen considerably over the past year, the amount of money lent for mortgages has fallen by 44% according to the CML, as banks are wary of handing out new loans and cannot get the capital needed to finance ...
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