Tougher Mortgage Borrowing Conditions

Anna Marie struggles with a mortgage on a house bought with her ex-partner, facing negative equity due to bad lending practices before the financial crisis. The Financial Services Authority has introduced new guidelines to prevent such issues, including stress testing and income verification. These changes aim to avoid lending based on rising house price assumptions, though they won't be implemented until 2013. While Anna Marie's situation remains unchanged, the new rules may help others avoid similar predicaments.

What challenges does Anna Marie face regarding her mortgage situation?

How does Anna Marie feel about paying towards a mortgage that is not increasing in value?

What changes are being proposed by the Financial Services Authority to prevent irresponsible lending?

What is the significance of stress testing mortgages according to the new guidelines?

What might be the consequences for borrowers if house prices do not increase as expected?