The majority of first time buyers believe banks must lend responsibly even though it could stop them getting onto the property ladder.
Three quarters of first time buyers want banks to adopt sensible lending practices, a poll conducted by YouGov on behalf of Shelter has revealed.
The survey also found that four in five (79%) first time buyers think banks and building societies lent irresponsibly before the credit crunch.
Over a third (38%) did not think they can be trusted to lend responsibly in the future.
With the cost of housing continuing to rise, many first time buyers would have to overstretch to get a foot on the ladder.
However, those surveyed did not agree that easy credit was the answer to overpriced housing.
More than eight out of ten first time buyers (84%) said they thought that banks should only offer mortgages to borrowers who can prove they can afford it.
Campbell Robb, chief executive of Shelter, said the survey showed people want simple, common sense rules in place to ensure money is borrowed responsibly.
"We are set for some really tough times ahead as repossessions are already starting to rise and more and more people struggle under the combined pressures of VAT rises, increasing unemployment and sky high living costs," he added.
"If we compound this by allowing irresponsible lending to make a return to the market, it will spell disaster for our fragile housing market and will undoubtedly result in many more people across the country needlessly losing their homes."
Matt Griffith, from first time buyer group Priced Out, said first time buyers had borne the brunt of loose mortgage lending in the past, after being expected to take unacceptably high financial risks when trying to get on the ladder and seeing house prices being driven sky high.
"First time buyers know that getting on the housing ladder is hard work, and we are prepared to work and save to get there," he added.
The Government is currently calling on regulators to delay the introduction of rules which would help protect people from irresponsible lending.
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