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In his speech at the AMI dinner this week, director general Chris Cummings also warned that the FSA’s preoccupation with ensuring the banks have enough liquidity to prevent further banking failures could risk bringing about a mortgage market failure.

He said: "I am concerned that the desire to see banks build up their capital is being taken too far," he said. "I think the FSA risks bringing about a mortgage market failure."

Turning to dual pricing, Cummings said that despite lenders' attempts to steer mortgage business away from intermediaries, mortgage business for advisers has actually picked up.

He said that around 80 per cent of first time buyers used an intermediary in the first quarter of 2008, representing a 10 per cent increase on the year before.

Intermediary business for re-mortgage markets also rose by 10 per cent in the first quarter, compared with the year before.

Cummings said: "It seems that this attempt to sweat the assets of the branches has actually proven one thing: in difficult times consumers want and seek out professional mortgage advice."

He also pleaded with lenders to recognise the value of the mortgage intermediary community.

"This is the time to support the mortgage intermediary market," he said.

To have your say on dual pricing, read the latest Speakers' Corner blog.