EU unlikely to reform mortgage rules

Published: November 20, 2007

It is unlikely that the European Union will drastically reform the continent's mortgage regulations in its long-awaited policy paper.

EU internal market commissioner Charlie McCreevy told Reuters that it was untrue the EU citizens wanted to be able to look for mortgages across all of the 27 member states.

However, he added that he did want to make it easier for lenders to offer their services in any EU state. This could help consumers find the best mortgage deal.

In conclusion, Mr McCreevy said that the upcoming White Paper would focus on non-regulatory reform of the mortgage market.

The news agency added that it had learned that the paper, due to be unveiled on December 12th, will look at ways to improve responsible lending standards and to standardise the presentation of annual percentage rates on mortgages.

It could also explore whether "legislation is needed later on so-called pre-contractual information given to customers".

A recent report from the European Central Bank suggested that lenders in the Union were unlikely to be significantly affected by bad credit mortgage problems.