FSA clampdown on mortgage brokers

Commenting on the FSA announcement it is to clampdown on 48 broking firms selling self-certification mortgages, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: "I welcome this crackdown by the Financial Services Authority. For too long there has been a feeling the regulator was all talk and no action.

"It is vital the FSA takes action, because the public will then be able to place a lot more confidence in those firms that operate above-board. The clampdown on 48 businesses is crucial, especially in an environment where many homeowners are already stretched to the limit. It is irresponsible of these brokers to have persuaded customers to overstate their income and take on a mortgage that, potentially, they will not be able to afford. Actions like that give the industry a bad name."