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Tough new lending rules expected
The FSA is not expected to ban 100% mortgages after consulting the industry
New rules intended to make sure that banks and credit card companies only lend to people who can afford the repayments are due to be introduced.
The move is part of a review of how lenders behave by the Financial Services Authority watchdog.
The government wants to make institutions liable for loans if it can be shown that they failed to check that would-be borrowers could afford them.
In a webcast, the prime minister said he wanted to end "reckless" banking.
'Proper checks'
Up until now, lenders provided loans to consumers on the basis that the borrower rather than the company would shoulder the risk - the government wants to see the onus of responsibility reversed.
The FSA is expected to make this and other recommendations official policy when it publishes its Mortgage Market Review on Monday.
New policy is also likely to clamp down on self-certified mortgages, as well as companies who push loans or credit cards on consumers without having been requested to do so.
But it is expected to stop short of caps on loan-to-value ratios and income multiples that lenders can offer borrowers.
Gordon Brown said the "much tougher rules" would protect the public
The mortgage market has self-corrected many of the past problems, but is still not functioning effectively 
Michael Coogan
Director-general, Council of Mortgage Lenders
"Never again should banks and credit card companies encourage you to borrow more than you can realistically afford to repay," he said in a webcast on the Downing Street website.
"I believe lenders should have to carry out proper checks on incomes before agreeing home loans.
"And to protect homebuyers further, we need much tougher rules to make sure that high loan-to-value or high loan-to-income mortgages are offered only when the lender has done rigorous checks to ensure people can keep up repayments."
Robert Sinclair, director of the Association of Mortgage Intermediaries, said regulation must "balance the need to protect consumers from unaffordable debt with their desire to buy a home of their own".
"We do not believe that the regulation of mortgage products will have the desired effect. In fact, it will restrict consumers unnecessarily," he said.
The Council of Mortgage Lenders warned against the introduction of too much new regulation at a time when it said many companies had already responded to changed market conditions.
Director-general Michael Coogan said: "The FSA faces a number of challenges and potential pitfalls in progressing its review too quickly.
"Perhaps the biggest of all is to resist external pressure to implement measures at a time when the mortgage market has self-corrected many of the past problems, but is still not functioning effectively."
The FSA is not expected to ban 100% mortgages after consulting the industryNew rules intended to make sure that banks and credit card companies only lend to people who can afford the repayments are due to be introduced.
The move is part of a review of how lenders behave by the Financial Services Authority watchdog.
The government wants to make institutions liable for loans if it can be shown that they failed to check that would-be borrowers could afford them.
In a webcast, the prime minister said he wanted to end "reckless" banking.
'Proper checks'
Up until now, lenders provided loans to consumers on the basis that the borrower rather than the company would shoulder the risk - the government wants to see the onus of responsibility reversed.
The FSA is expected to make this and other recommendations official policy when it publishes its Mortgage Market Review on Monday.
New policy is also likely to clamp down on self-certified mortgages, as well as companies who push loans or credit cards on consumers without having been requested to do so.
But it is expected to stop short of caps on loan-to-value ratios and income multiples that lenders can offer borrowers.
Gordon Brown said the "much tougher rules" would protect the public
The mortgage market has self-corrected many of the past problems, but is still not functioning effectively Michael Coogan
Director-general, Council of Mortgage Lenders
"Never again should banks and credit card companies encourage you to borrow more than you can realistically afford to repay," he said in a webcast on the Downing Street website.
"I believe lenders should have to carry out proper checks on incomes before agreeing home loans.
"And to protect homebuyers further, we need much tougher rules to make sure that high loan-to-value or high loan-to-income mortgages are offered only when the lender has done rigorous checks to ensure people can keep up repayments."
Robert Sinclair, director of the Association of Mortgage Intermediaries, said regulation must "balance the need to protect consumers from unaffordable debt with their desire to buy a home of their own".
"We do not believe that the regulation of mortgage products will have the desired effect. In fact, it will restrict consumers unnecessarily," he said.
The Council of Mortgage Lenders warned against the introduction of too much new regulation at a time when it said many companies had already responded to changed market conditions.
Director-general Michael Coogan said: "The FSA faces a number of challenges and potential pitfalls in progressing its review too quickly.
"Perhaps the biggest of all is to resist external pressure to implement measures at a time when the mortgage market has self-corrected many of the past problems, but is still not functioning effectively."
