FSA proposes affordability tests on all mortgages

In its Mortgage Market Review: Responsible Lending consultation paper, published this morning, the regulator outlines a number of measures it says will help ensure all mortgages are carefully assessed to make sure borrowers can afford them. It says lenders will require verification of borrowers' income in every case to prevent over inflation of income and mortgage fraud. Additionally, it proposes extra protection for vulnerable customers with a credit-impaired history. It says the proposed changes aim to ensure all lenders "get back to the basics" of responsible lending and that ...