MEPs pass final European mortgage rules

by Aaron Strutt

Dec 13 2013

MEPs have passed the financial rules of the European Mortgage Credit Directive designed to align the mortgage process across all member states. The aim of the directive is to provide increased protection for EU mortgage borrowers.

As part of the new rules, borrowers will be provided with an option of taking a “cooling off” or “reflection period” of seven days. Lenders will also have to provide two APRs if the borrower is taking a mortgage for less than five years to provide a more detailed costing.

Association of Mortgage Intermediaries chief executive Robert Sinclair told Mortgage Strategy magazine that he was disappointed with some of the new rules.

He was quoted as saying: “From a UK broker perspective, we are disappointed that these rules bring us back to having to go through a lot of written disclosure, which the UK regulator has acknowledged doesn't work best with consumers.”

December 13, 2013