The European Standardised Information Sheet (ESIS) must be adopted by the UK under the EU Mortgage Credit Directive rules under a ‘maximum harmonisation’ order.
Mortgages and mutuals sector manager Blackwell said the regulator is conscious that this would be costly for some firms so it has bought UK lenders more time to implement it.
The regulator is proposing to use a transitional provision offered by the Directive which allows first charge firms to continue using the KFI until 21 March 2019 providing they make certain ‘top up’ statements in their disclosure documents.
These are:
– Information on the seven-day right of reflection period
– An illustration of the potential interest rate changes using a second Annual Percentage Rate which goes back 20 years
– Extra information for foreign exchange loans
The consultation period on the European Mortgage Credit Directive closes on 29 December. Click HERE to submit your response.
The final rules are expected to be published in quarter one 2015 to give firms time to implement the rules by March 2016.
