AMI - FSA review must not restrict mortgage activity

The latest Mortgagee Market Review from the Financial Services Authority (FSA) should not "excessively restrict" the mortgage market.

This is the view of the Association of Mortgage Intermediaries (AMI), which said proposals which have been put forward to protect a small number of consumers could have an "adverse" effect on the property purchasing majority.

According to the AMI, plans involving high loan-to-value (LTV) and loan-to-income (LTI) deals could mean "unnecessary" controls and limits to consumer activity.

Robert Sinclair, director of the organisation, said: "We welcome FSA's view that the introduction of product regulation on LTV and LTI ratios is not necessary.

"However, the move to limit equity withdrawal and apply controls over debt consolidation risks prejudicing the options for many responsible borrowers, to protect a small minority from themselves."

Mr Sinclair added that that majority of mortgage customers should not have their options limited by an "artificial limitation of their choices."

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