Fast-track mortgage ban 'will make it harder for people to buy houses for sale'

The Financial Services Authority (FSA) ban on fast-track mortgages has received criticism, with experts claiming it will make it harder for people to purchase houses for sale.

Earlier today (July 13th), the FSA announced plans to make regulations more complex when trying to take mortgages out.

Senior technology manager at John Charcol Ray Boulger said this will mean it will take people longer to apply for mortgages and "lengthen the timeframe in some cases to get offers".

He also said that it "will put lenders' costs up" which will "end up costing consumers more".

The proposals included plans to impose affordability tests for potential homebuyers and requiring verification of borrowers' income in all mortgage applications.

Mr Boulger stated that the FSA admitted that the performance of fast-track mortgages is "better than the performance of non-fast track mortgages", making the move "completely illogical", according to the financial expert.

He added that the move to change the regulations had "no justification" as the market was "already adjusted".