IMLA's executive director, Peter Williams, said he was surprised at the Financial Services Authority's "downbeat approach" to the state of the market, saying that their doom-mongering is glossing over the many positives.
“Without denying that some borrowers are encountering financial difficulties, it must be remembered that arrears and possessions remain exceptionally low," said Williams.
"The FSA’s concerns about how lenders handle arrears are based on interviews with a very small sample of consumers in arrears, and seem to overlook lenders’ legitimate interests and their continuing desire to work with customers to find a solution."
He also said that a rate cut is key in aiding to restore confidence amongst investors, lenders and consumers alike.
“IMLA remains of the view that UK lenders’ mortgage books remain very sound and that negative sentiment has a corrosive impact on the market.”
