Mortgage market shake up unveiled

A wide-ranging shake-up of the mortgage market has been unveiled by the financial services regulator, aiming to prevent a return of irresponsible lending and stop borrowers taking out deals which turn out to be unaffordable.

The Financial Services Authority (FSA) said that while low interest rates have helped some borrowers, there are "real dangers" that problems are being stored away for the future, with home owners being unable to meet repayments when rates start to go up.