In light of the recent problems, mortgages may be cut to 90% Loan-To-Value, seeing the end of 100% mortgages said Lord Turner, chairman of the Financial Services Authority. He said he could foresee applicants having to have at least a 10% deposit. His plans were broadly welcomed by pressure groups.
Adam Sampson, Shelter Chief Executive said it was a chance to find a way for more responsible lending without freezeing out would be homeowners.
Peter Vicary-Smith, chief Executive of consumer group Which? urged the FSA to ensure that any changes made to the market, did not disadvanatge existing home owners, by forcing them out of market so that they can't re-mortgage and are stuck with their current providers.