AMI supports proposals for better information and guidance for consumers about mortgage products, but warns that what consumers really need is more competition among lenders and greater lending levels overall.
Robert Sinclair, Director of AMI, said: "The turbulence in the financial markets has had a major impact on the mortgage market and consumer's access to finance. The consolidation of the market and government intervention has led to the creation of four banking groups who control around 80% of the current account market and six groups who are responsible for around 90% of mortgages written. This concentration, under any economic definition, is a major restriction on competition and is ultimately bad news for consumers.
"We disagree with the conclusion of the Treasury report that the key characteristics of competition in the mortgage market have not been affected. We need to see an increase in the number of lenders or at least increased levels of lending among those in the market. Without this, consumers, and particularly first time buyer, will find it increasingly difficult to enter the housing market, which would stifle a recovery."
