“I am fully aware of the anger that this paper has generated and understand why brokers in particular may be wondering about their future place in the market, especially when there are figures bandied about that lenders could drop the number of brokers they work with by up to 60%,” he said, in a feature in this week’s Mortgage Solutions.

“However, can we possibly say, looking at those proposals, that any of them are truly unexpected, or that they look gratuitous, particularly to the man in the street?”

Young said the FSA asked the industry to give it a reason to change its mind on many of the proposed changes and either the industry failed or the regulator chose not to trust the advice.

He said the FSA proposals are popular with the national press and commonsense suggests obliging lenders to check a borrower can afford a mortgage are long overdue.

Moody’s issued a statement last week and said the FSA proposals to tighten controls in the UK mortgage lending market will increase the quality of lenders’ portfolios, in exchange for smaller margins in the shorter-term.

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