A series of proposals over how to solve problems caused by the ongoing credit crunch have been drawn up by the Association of Mortgage Intermediaries (AMI).

The organisation has produced a whitepaper detailing what it perceives to be the causes of the economic slowdown, establishing what the impact the credit crunch will have on lenders and borrowers and providing several initiatives to address the problems.

The need for alternative sources of capital for the industry, such as sovereign wealth funds, is highlighted in the whitepaper.

"We strongly feel that mortgage market has passed the stage where it is able to heal itself and find a resolution to the current crisis that is why we have taken the decision to publish a white paper calling for outside intervention," explained AMI director general Chris Cummings.

The chancellor Alistair Darling met with members of the Council of Mortgage Lenders yesterday to discuss measures to ease problems faced by homeowners following the credit crunch.


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