propertytalk Live! - Mortgages: better protection for European consumers

propertytalk Live! - Mortgages: better protection for European consumers

The financial crisis has shown the damage that irresponsible lending and borrowing practices can have on consumers and lenders, as well as the financial system and the economy at large.

This is particularly important in the integrated EU marketplace. With the 1st April 2011 legislative proposal, the European Commission shows its determination to ensure that such practices are not repeated in the future, and to help consumers to regain confidence in the financial system.

Borrowers will enjoy a higher level of protection through robust rules concerning advertising, pre-contractual information, advice, creditworthiness assessment, and early repayment. The requirement to provide personalised information to the consumer through a European Standardised Information Sheet will allow consumers to compare mortgage conditions from different providers. The proposed Directive also aims to create a more efficient and competitive single market for mortgages by creating a level playing field for all actors involved and making cross-border activity easier. It now passes to the European Parliament and the Council of Ministers for consideration.