Liberal Democrat MEP Sharon Bowles, who chairs the European Parliament’s Economic and Monetary Affairs Committee, commented:
“Buying a new home is one of the most important decisions people make in their lives. That is why our number one priority in drafting these new rules was to ensure that everyone has access to clear information and appropriate advice before taking out a mortgage, in the form of pre-contractual, personalised information in a standard format to help make comparisons on the market. This will help to reduce the kind of irresponsible lending which contributed to the current economic crisis, by helping consumers make a fully informed choice before entering into what is often a lifelong commitment.”
“Having a common legal framework will also make it easier for British citizens to buy properties abroad in countries like Spain and Italy by introducing an EU passporting system for credit agreements, adding legal certainty and better protection in cases where borrowers have to default on their loan”.