The Financial Services Consumer Panel is urging the FSA to take more time to ensure its Mortgage Market Review (MMR) proposals deliver the consumer benefits it intends.

The Panel wants to see an end to previous irresponsible lending practices but believes, however, that the FSA needs to do more work before introducing new rules with potentially far-reaching consequences.

In particular, the Panel is advising the FSA to undertake a full cost benefit analysis to ensure the wider social and economic implications of its affordability proposals are fully understood. It also wants the FSA to look more closely at the transitional arrangements for existing borrowers as well as the proposed regulatory arrangements to deal with future housing market bubbles.

Adam Phillips Consumer Panel Chair, said: “It is vital that the FSA now undertakes a thorough economic analysis on the likely impact of the MMR proposals. We need to understand the human and social implications of these changes as they could have major consequences not just for existing and future borrowers