The FSA has warned about the high levels of mortgage debt in the UK and that people are leaving themselves unprepared for hardships.

The FSA chairman Lord Turner said that 28 per cent of new UK residential mortgages in 2010 were for amounts greater than 3.5 times the borrowers income, a level not seen since 2007.

Lord Turner has warned there is a concern of people being left at risk to changes in personal circumstances or interest rates increasing.