AMI: CML November lending figures and predictions for 2009

Robert Sinclair, Director at the Association of Mortgage Intermediaries, said: "We are surprised by the Council of Mortgage Lender's predictions for lending figures in 2009. If the outcomes are as dire as the CML's predictions (£145M gross lending) then the industry and consumers in particular are in for a tough year. The suggested lending figures are significantly below those predicted by the recent Crosby Review of mortgage finance.

"It is now essential that the Government intervenes swiftly to implement Sir James Crosby's recommendations for the mortgage finance markets. Sir James set out some practical proposals for the market, which included Government guarantees of new mortgage securities. This move would help to ease the future funding of mortgage loans. This now appears absolutely essential if we are to guarantee a reasonable level of lending in 2009. The alternative is that many consumers will be trapped on higher cost loans."