Hot on the heels of comments from the FSA yesterday about irresponsible lending by investment banks and brokers to risky customers with poor credit records - we now hear from the Financial Times that a number of specialist mortgage lenders are to introduce instant mortgage approvals over the telephone or online without even requiring a formal property valuation., like it was with houses for rent in Japan once.

According to the FT this is being driven by the fierce competition between lenders and is creating greater ‘innovation’ in product offerings. We think this sounds more like desperation than innovation, and worry that the same unbalancing of credit risk, backed by over valued assets such as housing reminds us of Japan at the beginning of the 1990’s.

According to the FT - Ray Boulger, technical director at mortgage brokers John Charcol, says: Lenders could develop their existing systems as electronic information becomes more available and reliable. It is a matter of lenders being comfortable enough with the technology to rely on it to make an unconditional mortgage offer.

At the same time other property experts have voiced concerns over these unconditional offers - Melanie Bien at Savills Private Finance says: They do look extremely risky. Lenders want evidence that the property is worth what is borrowed and without this they could end up with their fingers being burnt.

The FT concludes that for many house buyers the instant offers could give protection against being gazumped or held up by inefficient property chains.

We here at The Business News Source conclude that any form of inadequately qualified lending at a time when unemployment is rising, interest rates are rising and general uncertainty pervades would be wholly irresponsible of lenders.

These are all signs that we could be reaching the end game in the housing bubble.