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Borrowers, not for the first time, were blinded by the ever-increasing property prices and lenders became ever more desperate to achieve significant market share.

In the last five years the interest rate differential between prime and adverse reduced markedly as did the disparity between standard and self-certified loans.

The evaluation of risk was based on the erroneous assumptions that rates would remain low and prices would inexorably rise and, surprisingly, lenders seemed to believe this to be a universal truth.

The memories of the 1981 to 1994 period were forgotten or ignored in pursuit of market share and quantity was favoured over quality.

With so many lenders having removed themselves from the market I foresee a completely different landscape for the next five years.

Lenders may be hard pressed to respond to consumer demand when it eventually erupts and this will translate into the setting of more stringent terms than made available in recent years.

Ownership of securitised assets is now acknowledged to be far higher up the risk scale than previously envisaged and we may never return to the halcyon days of easy and cheap finance.

This injection of reality may prove beneficial to all concerned as it should dissuade those borrowers who favour buy-to-let as the mainstay of their retirement portfolio.

Alan Lakey is partner of Highclere Financial Services

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