According to industry expert Lord Turner, we are unlikely to see a repeat of the mortgage crisis in the future. The low interest rates make it impossible for a similar future possibility even if house prices continue falling.

Even though a decrease in interest rates is likely to stop it from happening again, there are still plans to limit the size of home buyer's mortgages by imposing a maximum multiple of their income.

Lord Turner said Turner said: "A key choice in product regulation would be between LTV and LTI (loan-to-income) limits. There is a prima facie case that LTI limits are more likely to be appropriate, given that it is the relationship between income and loan repayments which determines whether a household can service its debt."

The self certification market will need to be further regulated if the FSA decides to set a maximum threshold of multiples in relation to income. This means that borrowers will need to have their incomes verified more closely than before and proper documentation handled as well.

The move is aimed at protecting people who tend to over borrow/risky borrowing.

If done effectively, it should stop a reoccurrence of the crisis which overtook UK in November 2008.

To make sure you get the right property advice, get in touch with a Clear Property Investment representative.

View other news from May 2009