Surpised no-one has mentioned this today.

[TimberWolf]

Is there no recommendation of income multipliers in what is lent?

[ladymuck]

"The FSA needs to ensure that firms only lend to people who can afford to pay the money back"

Essentially, you have to prove you don't need the money in order to borrow it.

How can you guarantee that, over the course of a 25 year mortgage, you will always be able to afford to pay the money back? Does that mean you could sue your financial advisor if, say 15 years after taking a loan out, you can no longer afford the repayments because they recommended it to you?

[TheFaQQer]

Will the PCG be addressing this?

Why not ask on the PCG fora?

[VectraMan]

Won't this mean that people who aren't able to afford to buy their own homes are left behind, and won't be able to buy their own homes?

[Clippy]

This Telegraph article states:

Will these changes definitely take place?

They are not taking effect immediately but are being put out to consultation, so the final rules could be different.

The FSA said: "The discussion paper is out for discussion until January 30 2010 and we will be actively seeking views from consumer groups and industry.
A feedback statement will be published in March.

Will the PCG be addressing this?

[TheFaQQer]

Good.

Very few people understand the consequences of borrowing money - they can only see as far as the plasma screen, the holiday in Barbados or the new car.

I understand completely - Carol Vorderman explained that I could pay less each month, and buy a big TV and go on holiday, because those nice folks at ocean Finance would help simplify my debts.....

[AtW]

Surely this is the solution as a lot of false self-cert mortgages were taken because mortgage advisers were advising people to 'massage' their income figures.

It's very hard to prove that morgage advisers did that, but it's easy to prove that person signed piece of paper for income that they did not have have at the time.

[Clippy]

One of the proposals is "Banning ‘self-cert’ mortgages through required verification of borrowers’ income". The organisation believes self-cert deals were expanded beyond the intended market and typically result in higher borrowings and are more prone to fall into arrears.

Others proposals include affordability tests for all mortgages, banning certain "toxic combinations of characteristics that put borrowers at risk" and making all mortgage advisors answerable to the FSA.

Surely this is the solution as a lot of false self-cert mortgages were taken because mortgage advisers were advising people to 'massage' their income figures.

[Doggy Styles]

Self-Cert mortgages on the way out.

Good.

Very few people understand the consequences of borrowing money - they can only see as far as the plasma screen, the holiday in Barbados or the new car.

[Paddy]

It want stop your limited company giving you a pay rise and certifying your income.

Self certs worked fine until they were asking unemployed council estate chavs to certify themselves

[DaveB]

Self-Cert mortgages on the way out.

IT contractors aghast as FSA evicts self-cert mortgages. Self-employed to live in old computer boxes