With current market turbulence having a significant effect on banks' abilities to secure wholesale market funding, the Association is calling for lenders to absorb more of the cost to help boost tightening affordability.
It also revealed it is in discussions with the Treasury and the Bank of England, amongst other authorities, to help bring in new lenders from overseas to help inject funding into the UK market.
AMI director, Richard Farr, said that whilst the Association recognised the difficulties facing lenders, they shouldn't lose sight of their responsibilities to consumers.
"Recent results in the banking sector demonstrate the relative strength of the UK mortgage market in comparison to the US. The profits show the resilience of the market and banks should seek to absorb a share of these extra costs and ensure they are treating customers fairly.
"There may be a reduction in the size of the wholesale lending market, which risks leading to an upward trend in the cost of borrowing. But this should not be passed on in full to the consumer."
