Budget should help mortgage market

The upcoming Budget should contain measures to help the mortgage market, it has been suggested.

Following the Bank of Englands decision to keep the base rate of interest at 0.5 per cent, the Association of Mortgage Intermediaries called for Alistair Darling to make provisions for the housing industry.

It said the Bank had attempted to keep its hands in its pockets and say "steady as she goes".

However, the bodys director Robert Sinclair stated the chancellor should attempt to steer the mortgage market to safety.

"Many people already have higher loan-to-value mortgages, a difficult credit history or too small a deposit," he said, explaining more had to be done to help.

Mr Sinclair added that "thousands" of citizens were still suffering from the lack of liquidity.

The news comes just weeks after the Council of Mortgage Lenders urged caution after the Bank released figures showing an increase in lending during February.