New mortgage regulation to put a break on mortgage lending? Asks London Mortgage Broker Tuesday, 20th October 2009

Cautious lenders could turn down more mortgage applications,when the mortgage market clampdown by the Financial Services Authority FSA) comes into force.

Sellers could face even longer delays if lenders take fright after the FSA’s mortgage market review.

With the proposed ban on self-certified mortgages and new tougher rules on affordability, this could mean lenders being held responsible for loans going wrong.

Homes owners sho are trying to sell their homes are taking on average nearly seven months to sell their houses and part of that is due to the cautious attitude of mortgage lenders. Many of them are clamping down on perfectly creditworthy borrowers and the fear is that they will now over-react again.

Whilst it is right to clean up the mortgage market to avoid the excesses of the recent past there is now a atmosphere of responsible lending and what we do not want is any further tightening of mortgage lending.