UK regulator unveils tighter rules for mortgages

The UK Financial Services Authority today announced proposals to ban self-certification mortgages and impose affordability tests on all home loans.

The watchdog is also calling for a ban on mortgages containing “toxic combinations” which put borrowers at a higher risk, such as lending a high proportion of a property’s value to people with impaired credit histories.

Other measures being proposed include bringing buy-to-let mortgages and all other lending secured on a home within the FSA’s regulatory scope.