EU rules demand UK mortgage deals must come with better advice.
New European rules governing UK mortgage deals have been approved by the Economic and Monetary Affairs Committee. The aim is to bring about an end to irresponsible lending.
The proposal states that would-be buyers must be fully informed of all terms before taking on a mortgage.
The rules have been created to ensure that buyers are offered mortgage deals that are specifically tailored to their financial needs. A borrower's creditworthiness is to be thoroughly assessed. Also the proposed new rules state that home-owners who fail to repay their mortgage are to be better protected from the seizure of their assets.
The new European mortgage requirements have been adapted to fit in with the differences between the national property and mortgage markets of member states. However basic rules apply EU wide and information supplied to buyers must be presented in a consistent format.
Mortgage applicants must be offered independent and impartial advice to enable them to fully understand the long term financial implications of taking out the proposed mortgage. Any credit terms offered will need also to be in line with their current financial situation.
The EU rules aim to protect home-owners from both irresponsible lending and their own misjudgements, to ensure that mortgage deals are only offered to those who can afford them. A 14-day cooling off period is also to become standard after a deal has been signed.
For up to date advice and a comparison of the most competitive UK mortgage deals on offer, contact Deal Direct today.
