The Building Society Association has called on the City watchdog to suspend the imposition of its planned new mortgage lending restrictions. They say that the proposed new curbs are unfair because they will apply to them but not to banks.

The Financial Services Authority argued that the changes were necessary to prevent a repeat of the problems suffered by some mutual lenders in the run-up to the credit crunch. A number of societies suffered from heavy exposure to activities such as sub-prime lending and products such as self-certified mortgages and commercial property loans, without having the proper controls in place.

The Times