New figures, released today, has shown first-time buyer mortgage lending has dipped for the first time since the start of the year.
Some 19,400 loans worth £2.5 billion were taken out by first-time buyers in April, a 1% decrease on the previous month, according to Council of Mortgage Lenders (CML) figures.
This marked the first drop in first-time buyer numbers since January.
Despite the recent pause, activity among first-time buyers in the first four months of the year has been stronger than during the same period a year ago, with 11% more loans advanced, the CML said.
Property expert Kate Faulkner has told Daybreak that the move to toughen up on mortgage lending is a sensible one.
She said: "They don't want to compound the problem by giving more people interest-only mortgages with no facility to pay it off."
The Council of Mortgage Lenders (CML) previously raised concerns that many more existing borrowers could find themselves trapped under the new rules.
The FSA has now altered its plans so that lenders would be able to "switch off" the requirements for existing borrowers who wanted to get a new mortgage for the same amount or less, provided they had a good repayment history.
The clampdown follows a period during the property boom when would-be buyers increasingly stretched their finances to get on the ladder.
The FSA has previously warned that a "ticking time bomb" has been created over the last 20 years, with an estimated 1.5 million interest-only loans worth around £120 billion due for repayment in the next decade.
Such deals allow borrowers to pay off the capital only when the mortgage term ends, but lenders have abruptly cut back on them amid concerns people cannot afford to pay them back.
The FSA is looking at how many interest-only borrowers will be unable to repay their loans and plans to publish its findings next spring.
- Last year, a house was worth around five times the buyer's income on average, compared with 3.7 times a decade ago.
- Shelter found last year that 42% of borrowers sometimes found it hard to make mortgage payments, with 14% struggling constantly.
- The regulator estimated that as a result of lenders already tightening their borrowing criteria, up to 45% of borrowers who had taken out a deal since 2005 could be mortgage prisoners.
- Roughly half of them were thought to be trapped due to their credit problems and the other half because interest-only and low-deposit deals had become more restricted.
Lenders would demand mortgages are paid off by the time people were 70 or 75, reports the Daily Mail.
New regulations will also include a crackdown on interest-only mortgages, a favourite of first-time buyers as they only require payment of interest on the loan, not the actual loan sum itself.
But lenders will now have to demand that homeowners with interest-only mortgages build separate savings to pay off the loan itself, the Council of Mortgage Lenders said.
Checks will also be made during the term of the mortgage to make sure the savings fund is still in place.
The raft of restrictions are set to be placed on mortgage loans due to a clampdown by the FSA on irresponsible lending, to make sure borrowers can only take out deals they can afford.