As part of the FSA’s consultation on interest-only mortgages, the Association of Mortgage Intermediaries (AMI) has hit out at the regulator’s position.

The broker body says the submissions from the CML, BSA and IMLA have its broad support.

Robert Sinclair, AMI director, said: “Our credit crunch was driven by the closure of capital markets and the inappropriate risk assessment of securitised mortgages. It was the bad use of these mechanisms that led to the bank bailouts. If the FSA conducted a proper root cause analysis it would have led them to that answer and