Brussels, 13/05/2013 (Agence Europe) - On Wednesday 8 May, the permanent representatives of the member states of the EU approved the agreement reached on 22 April between the negotiators of the European Parliament and the Irish Presidency of the EU Council of Ministers on the rules aiming to increase the regulation of the mortgage market (see EUROPE 10834). The legislation aims to provide greater protection for consumers taking out a mortgage to purchase a residential property, land or commercial offices from 2015, by means of pre-contractual information, particularly on borrowing rates. These new provisions also call for an information obligation on the part of the consumer, to allow the creditor to assess his or her solvency.
The agreement also provides for a transparency requirement on financial risks linked to exchange rate fluctuations for loans denominated in foreign currencies. The consumer will also have seven days to withdraw without penalty. Under conditions to be laid down at the discretion of the member states, the person taking out the mortgage will be given the opportunity to make an early repayment.
The Irish Presidency must now confirm the Council's approval of the text to the Parliament, so that it can be adopted at first reading. (EL/transl.fl)