Earlier this week, Tory leader David Cameron warned against pumping more liquidity into the mortgage market. On the BBC’s Today programme, he said: “Attempting to refloat the mortgage market is a difficult thing to do. Big plans have big problems.”
Cameron argued that adding liquidity would help “push open the door for 95 per cent and 100 per cent mortgages” which he said was a dangerous move.
The AMI has been championing the cause for Government intervention in the market. Director Chris Cummings says: “We are working with the Government and all other parties in pushing proposals for proportionate, cautious intervention in the mortgage securities market.
“I met with David Cameron recently and his main concern is that any Government intervention could lead to the market overheating. I argued that the market is like a pendulum and right now it has swung in the opposite direction. The Government needs to intervene to help the liquidity markets.”
Cummings says he believes the Conservatives are cautious over backing any funding plans as they think they will win the next general election and will then be faced with financial responsibilities for any actions.