Mortgage borrowers are set to get more protection under new EU draft proposals 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, reports 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 the draft set of rules would cut down on irresponsible lending in the housing market.
He says: “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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