CML: EU right to ditch mortgage directive

The Council of Mortgage Lenders (CML) expressed relief today that the European Commission's white paper on mortgages, published today, would not be recommending a mortgage directive without further study.

The group said that proposals to improve cross-border access to credit databases and valuation information could be helpful, but welcomed postponement of a directive that would not have tackled structural issues.

CML concerns focused on what it considered to be ill-advised attempts to harmonise consumer protection, which it felt would not serve to open up markets and would leave structural barriers to cross-border lending untouched.

CML deputy head of policy Andrew Heywood criticised the Commission's approach, explaining: "We hope that it will finally come to realise that a directive would not add value to its attempts to promote greater integration across EU mortgage markets.

"We are particularly concerned that imposing further constraints on lenders will simply increase costs at a time of increased market uncertainty and reduce lenders' appetite for cross-border lending with no tangible benefits for consumers."

Areas such as London attract huge interest from overseas property seekers, bringing the European Commission to strive for easier cross-border lending conditions – but both Brits and foreign workers in the capital often consider rental property a better option.

Published 19th December, 2007

© 2007 Estates IT Limited