Borrowers face a mortgage affordability test from lenders amid plans by the Financial Services Authority to step up the regulation of home loans.
Self-certification mortgages will be banned under the proposals with lenders required to verify borrowers’ incomes.
FSA chief executive Hector Sants said that some people who got home loans in the boom would no longer be able to do so under the proposed new rules.
The mortgage industry has until 31/01/10 to comment on the announcement. RSS feed the www.lyndhurstfm.co.uk blog page for more updates.
