Mortgage approvals 'will drop with FSA moves'

Certain people will find it hard to get a mortgage due new measures being brought in, an expert has claimed.

Ray Boulger, a specialist in the field, was speaking after the Financial Services Authority (FSA) announced plans that will make it harder for borrowers to get accepted.

The new rules will see affordability tests brought in, while there will also be extra protection for vulnerable customers with a credit-impaired history.

Mr Boulger observed that introducing a ban on fast-track mortgages could result in the cost of the product increasing.

He added that the decision of the FSA does not make sense, as these types of mortgages have performed better than other non fast-tracked options.

Mr Boulger remarked that the moves were not required, as lenders had already tightened up their procedures as a result of the credit crunch.

The Council of Mortgage Lenders recently announced that house purchase lending rose in May, with 42,000 approved, which is up 2% in volume and 3% in value on April.