Euro MPs legislate for a safer and fairer mortgage market

In a key vote in the European Parliament’s Economic and Monetary Affairs Committee today, Euro MPs voted overwhelming in support of a draft new Europe wide law on mortgage credit reform.

Vice Chairwoman of the Economic & Monetary Affairs Committee, Euro MP Arlene McCarthy said: “Poor standards for ensuring responsible lending and borrowing in the mortgage market played a key role in the development of the financial crisis in the last decade. That is why this new draft law is so important.”

“The law if supported by the full European Parliament in September will introduce higher standards for selling mortgages and clear criteria that advisors should follow when providing advice to consumers including supplying easily understandable information.

“As the former Chair of the Consumer Protection Committee I welcome the reports strong pro-consumer measures which ensure flexibility for borrowers, particularly for early repayment and portability of their mortgage to a new property. These rules are important in the current time of crisis to prevent consumers borrowing beyond their means.

“At time of low and falling house prices and with consumers experiencing difficulty getting mortgages it is important to have strong consumer orientated legislation to regulate the mortgages market and protect consumers.”