Mortgage News
EU regulatory paper clamps down on “irresponsible” mortgage lending
The mortgage industry faces another raft of regulatory change under new draft proposals from the European Union, set to be unveiled today.
Under the proposals, lenders will be required to provide clearer information on mortgages, allow borrowers the right to repay loans early and give warnings about the risks of taking out loans in foreign currencies, reported the Telegraph.
As part of the legislative package, UK borrowers and mortgage customers across Europe will have to be given an information sheet setting out the features of the loan, risk factors repayment features, withdrawal rights and details of how to complain.
Michel Barnier, EU internal market and services commissioner told the Telegraph that the draft set of rules would cut down on irresponsible lending in the housing market.
He said: “The draft set of rules are designed to ensure a high standard of pre-contractual information and improved lending practices across Europe, while promoting a dynamic, competitive and more integrated single market for mortgage credit.”
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