EP adopted report on mortgage credit

14 November 2006

The European Parliament adopted a report on mortgage credit drawn up by John Purvis, as Parliament’s response to a Commission discussion paper on the mortgage market. The report says that any EU level action should aim principally at directly improving the situation for the public, notably by widening access to mortgages, for example to people with fixed term contracts. The report also stresses the need for extensive consultation in deciding on any EU action.

Parliament calls for harmonisation of provisions for pre-contractual information. Also, the Commission should consider making the existing Code of Conduct in this area mandatory if early compliance is not forthcoming. Lenders should make available information on all the costs involved, not just the interest rate.

The report also urges the Commission to examine the legal and technical barriers such as discriminatory tax obstacles, and different fiscal treatment of local and foreign lenders. It states that the Commission’s action to facilitate cross-border mergers in financial services will not in itself promote integration of the retail market.

Report

© European Parliament