In the past, many homeowners were guilty of biting off more than they could chew.

It’s no wonder the bubble burst when they took on mortgages they couldn’t afford, or found they could no longer meet payments once their circumstances changed.

However, a new set of rules will prevent people taking on more than they can afford and could put paid to debt problems of the past.

The Mortgage Market Review (MMR), which came into force on Saturday, involves greater scrutinisation of applicants. The rules aim to ensure people who can afford to repay their mortgages, while preventing any return to irresponsible lending behaviour of the past.

Applicants will now have to provide more documentation with possibly between three and six months of bank statements so lenders can assess what their spending habits are.

In addition to regular outgoings being taken into account when applying for a mortgage, household bills, childcare, the cost of daily commutes, food and debt repayments may also be taken into consideration.

Brian Murphy, head of lending at the Mortgage Advice Bureau, which works with estate agencies throughout the area, says: “They may be looking at how much people spend on holidays or leisure time. It won’t necessarily mean they cannot get a mortgage but it will take into account what they are spending.”

Lenders will also be applying ‘stress tests’ to check people can afford the mortgage payments now and will be able to continue to do so when interest rates start to rise.

Mr Murphy says due to the greater degree of scrutiny, applicants may find the process takes longer. “It takes time and, as a consequence, they may see the application to offer stretching out for a little bit in the short term, but things will settle down,” he adds.

Even those wanting to make an adjustment to their existing mortgage could be affected by the rules.

Interest-only mortgages, which allow borrowers to pay off the capital only when the mortgage term ends, will still be offered under the stricter rules but they will be considered a “niche” product and those seeking one will have to show they have a credible strategy in place to repay the loan when it comes to an end.

Mr Murphy explains while the regulations came into place at the weekend, most lenders have been operating to the new standards for a while.

He says they welcome the new rules, which will ensure it is a sustainable mortgage market now, and in the future.

A spokesman for Yorkshire Building Society, whose head office is based in Bradford, says they have always sought to provide mortgages only to people who can afford to repay them, and asking applicants to be clear about planned financial commitments and known changes to earnings reflect that.

“We welcome positive changes to the mortgage market which benefit consumers and we have been preparing for some time for the new regulations that are being introduced as part of the Mortgage Market Review.

“As a responsible and prudent lender, Yorkshire Building Society already assesses all mortgage applications on affordability – and affordability is at the core of MMR,” says the spokesman.

A spokesman for debt-counselling charity Christians Against Poverty, based in Bradford, says: “We broadly welcome the changes from the Financial Conduct Authority which will protect some consumers from over-stretching themselves.

“We have been calling on all types of lenders to toughen up their affordability checks so that credit is not given to those who shouldn’t be borrowing and could have ended up in poverty and losing their home."

She added that there are some concerns about how the new criteria will be interpreted, for example, for people who have had a life-threatening illness but made a full recovery or someone who has taken out a payday loan but paid it off in full, something that should not be considered a negative.

Martin Wheatley, chief executive of the Financial Conduct Authority, says: “There has been huge effort both by the regulator and the industry to get to where we are today.

“Since the crisis, lenders have been taking a far more sensible approach to mortgage lending, and the MMR is designed to ensure that this common-sense approach continues. We do not want to see mortgage-lending return to the practices of the past where people were taking out mortgages they simply couldn’t afford.

“While for some borrowers the questions being asked may seem more detailed, they should feel confident that practices which led to hardship and anxiety for consumers in the past will not be repeated.”