The level or arrears and repossession should be lower than the early 1990s, the head of the Financial Services Authority (FSA) said yesterday, as the short-term financial position of many borrowers had been improved by low interest rates. Lord Turner added he is still considering regulating the size of mortgages being made available â limiting their amounts to the value of the property or the borrower’s income. He also warned that early indications suggested the buy-to-let market may produce ‘significantly higher arrears and defaults than owner occupiers’.