Mortgage market 'will rebalance during 2008'

The mortgage market will rebalance over the course of the year, according to the Association of Mortgage Intermediaries (AMI).

Although there has been turbulence in the market recently, the organisation has claimed that things are beginning to look up and there may be a return to normality by the end of 2008.

Richard Farr, director of AMI, said: "We fully recognise the need for the FSA [Financial Services Authority] to assess the state of the mortgage market on a regular basis. The market is currently going through a period of turbulence, as all markets will do."

He added that recent results in the banking sector "demonstrate the relative strength of the UK mortgage market in comparison to the US".

The organisation also urged lenders not to pass on the rising costs being experienced recently on to the customer.

AMI claims to be the voice of the mortgage intermediary and presents the collective view of its members to the regulator.

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