Single Market Commissioner Charlie McCreevy today welcomed a report which proposes measures to boost the integration of the EU home loans market. This could lead to more choice and financial savings for consumers and could also present new opportunities for lenders.
The report was published today by the Forum Group on Mortgage Credit, an organisation set up by the European Commission in March 2003 and which is made up of industry and consumer representatives.
The report makes 48 recommendations which cover areas such as consumer protection, client credit assessment, mortgage brokers, registration systems, which law should apply in cross border deals and the financing of mortgages through capital markets.
'A mortgage is the biggest purchase most consumer make,' commented Commissioner McCreevy. 'So we must not shrink from the challenge of creating a true single market for home loans. An efficient single market could mean cheaper and better loans for all Europeans, whether or not they obtain their mortgages abroad,' he added.
Outstanding residential mortgage loans in the then 15 member states stood at €4 trillion in 2002 or 40% of GDP. Yet a recent study showed that only 1% of Europeans, most second home owners or those in border regions, take out a mortgage from another member state.
Reasons include the difficulty of comparing complex products and language and legal barriers.
