Lenders are due to receive an insight into which areas of the mortgage market the City watchdog believes need to be improved.

The Financial Services Authority (FSA) is holding a mortgage conference in which it will outline the areas of mortgage lending where it thinks change is necessary.

The regulator is currently reviewing the mortgage market as part of the Turner Review and it is due to publish a paper in September on the future shape of regulation.

It has already said it is considering limiting the amount homeowners can borrow relative to their income or the value of their home.

The FSA has previously said the rapid expansion of mortgage lending in the UK was a key factor in triggering the current financial crisis, with the high loan-to-value ratios and loan-to-income ratios advanced playing an important role in the problems.

Chairman of the FSA Lord Turner will address the conference about taking the Turner Review forward, while director-general of the Council of Mortgage Lenders, Michael Coogan, will outline what lessons can be learned from the past.

Financial Services Secretary to the Treasury Lord Myners will also provide an update on plans to address the current funding gap in the mortgage market, caused by the wholesale money markets drying up.

And the conference will look at the way mortgages are sold, and the impact this has on consumers.

The mortgage market has been hit hard by the credit crunch, which has deprived lenders of a vital source of funding and left them increasingly reliant on using customers' deposits to fund mortgage lending.

Lenders have responded to the current problems in the mortgage and housing markets by tightening their lending criteria and demanding increasingly large deposits from customers.