The Government will propose a new set of regulations to give the Financial Services Authority greater power to protect mortgage borrowers . The Treasury made the announcement that the Government would expand the FSA umbrella of regulation to include the buy to let mortgage sector, and second-charge mortgages .

Those people whose mortgages are sold onto third parties will now be protected by the FSA, if the proposals come into force. Many mortgage borrowers, particularly sub-prime borrowers, saw their mortgage loans sold onto hedge funds and private equity firms. The new regulations would give these borrowers stronger protection.

Exchequer Secretary Sarah McCarthy-Fry was reported as commenting: Since the onset of the global financial crisis, the Government has worked hard to ensure mortgage borrowers are treated fairly by their banks. But we are aware that this crisis has raised issues around the world about the regulation of the mortgage market . We are determined to reform the system for the future, to offer both stronger protection for consumers and greater stability in the housing market.