The Financial Services Authority (FSA) has today (19 December) unveiled its Mortgage Market Review, which has been designed specifically to ensure "common sense" is used by financiers when they make decisions on home loans.
It is hoped these alterations will mean the "irresponsible lending" practices during the global economic downturn will not be repeated, as companies will be required to provide thorough information and details to prospective customers before any contracts are signed.
Under the timeframe announced by the FSA - which operates under the Financial Services and Markets Act 2000 - the final version of these rules will be rolled out in 2013.
Lord Turner, chairman of the regulator, commented: "It is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return."
By Gary Cooper