The Financial Service Authority’s recent proposals to tighten mortgage rules will make it more difficult for millions to get mortgages.

The FSA wants to check the risky mortgage lending that played a key role in the recent credit crunch. The proposed suggestions will require lenders to take into account a borrower’s job, pay, potential earnings, number of dependents etc. before lending. In addition, self-certification loans, in which a borrower declares his /her income without proving it, will also, be banned.

But, on the other hand many experts are warning the FSA that its recent proposals will drag property prices down by throwing a million households out of the mortgage market. New rule proposed by the FSA may result into increased mortgage processing costs, which will affect the housing market adversely.