The BSA has followed the CML by responding to the FSA’s Responsible Lending Consultation. It is calling for a government debate on the future shape of the mortgage market, prior to the FSA pressing ahead with its proposals.

The BSA argues that it is not the role of the FSA to bring forward rule changes that would have a profound effect on the housing market, social mobility and aspirant homeowners.

Paul Broadhead, BSA head of mortgage policy, said: “The proposals in the responsible lending consultation could have far reaching consequences in relation to the wider economy. It is for the government to provide a clear plan of their housing policy objectives. It will then be imperative to assess whether regulatory proposals facilitate the desired outcomes for UK consumers or present further obstruction.