AMI: increase mortgage market competition
The Association of Mortgage Intermediaries (AMI) has called on the Government to introduce a range of measures to increase competition in the mortgage market. The request comes ahead of the Pre-Budget Report, in which the AMI has urged a review of the current Stamp Duty regime, including extending the current Stamp Duty holiday until the housing market has recovered. "Reform of the current Stamp Duty regime is an urgent requirement. The slab structure distorts the housing market with properties just above thresholds paying a significant amount of duty above that of properties just below them in value," said Robert Sinclair, director of the AMI. "Stamp Duty also places a disproportionate burden on first time buyers. Many are unable to extend their borrowing to cover the additional cost of stamp duty. The current holiday on the duty should be extended until the market has recovered. By helping more first time buyers onto the property ladder, this extension can serve to revitalise the market." The body has also recommended encouraging building societies and other non-banking institutions into lending, as well as ensuring the Mortgage Market Review does not completely remove consumers' responsibility for their own financial decisions. Greater incentives to encourage consumers into shared ownership programmes have also been suggested, as has passing responsibility for second and subsequent charge residential lending to the Financial Services Authority.