It made the news headlines this morning... the Financial Services Authority's Mortgage Market Review, a revised (amended following feedback) consultation aimed at ensuring the types of irresponsible lending that flushed us all deep into the economic u-bend remain firmly an embarrassing memory. Like losing your virginity. Or this.

The crux of the proposals are about separating lending affordability from predicted house price rises and applying stricter, more realistic criteria. Lenders should assume interest rates might rise, and test affordability under those circumstances. Income should be verified (an end to "liar loans"), council tax and heating should be taken into account when testing a borrower's ability to meet mortgage repayments.

And that's it?! It took a body of experts to realise current interest rates can't be relied on indefinitely, that people might lie about their income, and it's unreasonable to expect rising house prices to cover unaffordable loans? Apparently so.

Here's the official page. The new consultation period runs until March 30, 2012.

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