The mortgage market is in "uncharted territory" with reduced funding and consumer confidence, it has been stated – something that may mean affected parties will look into debt management.
Targeted fiscal stimulus is in need straight away and the confidence that once supported the mortgage market has been steadily destroyed, said Robert Sinclair, director of the Association of Mortgage Intermediaries (AMI).
He asserted that the government needs to help out the market so that lenders can lend and borrowers can borrow.
"Without this intervention we risk losing the confidence of a whole set of people who will be denied the benefits enjoyed by previous generations," he added.
The AMI believes that the abolition of stamp duty land tax and home information packs are two measures that would help establish a more sustainable and optimistic mortgage market.
It also advocated a tax-free savings account, managed by National Savings and Investments, to support people saving for a deposit.
Earlier this month, Mr Sinclair said he was in support of interest rates remaining the same at 0.5 per cent and also welcomed the news that the government will add £50 billion to the quantitative easing programme.