Law Firm Dyulgerova and Penkova Home     About Us     Contacts
Practices Articles Membership
Recognitions
News
Home / News / Parliament outlines rules to limit risks for home buyers
Practices


Construction Law and FIDIC Conditions of Contract
Customs and Tax law
Public Procurement Law
Corporate and Commercial Law
Litigation and Debt Collection
Commercial Insolvency
Real Estate Law
Insurance Law
Employment and Social Insurance Law
Intellectual Property Law
Energy Law
Immigration Law
Latest News


archive by year
2017  |  2016  |  2015  |  2014  |  2013  |  2012  |  2011
Parliament outlines rules to limit risks for home buyers

Home buyers would be better informed about the costs and risks of taking on a mortgage, partly shielded against market swings that inflate their repayments and better protected if they default on the loan, under new rules provisionally approved by Parliament on September 10th .
 
The legislation will cover mortgages on residential property, residential property including an office space and building land. Anyone signing up for a mortgage in the EU should receive comparable information about the products available, and understand the total cost and long-run financial consequences of taking out the loan. Credit terms offered to borrowers would have to match their current financial situation and take account of their prospects and possible downturns. Moreover, buyers would have to be given a mandatory 7-day reflection before signing the loan, or a 7-day right of withdrawal thereafter. 
 
MEPs inserted more flexible rules, including a borrower's right to repay the loan early, subject to possible conditions to be decided by EU member states, and a lender's right to fair compensation for such early repayment. However, obliging borrowers to pay penalties for early repayment would be prohibited. Under the new rules for loans denominated in a foreign currency, the borrower should be warned before signing the contract that the instalments payable could increase. Alternatively, the borrower could be allowed to change the currency, on certain conditions and at the exchange rate stated in the loan contract. MEPs added a new rule stipulating that the return of collateral such as the property itself will suffice to repay the loan, provided that the lender and borrower expressly agree to this in the contract.
 
Where a borrower defaults on a loan, the legislation should include requirements to sell the property for the "best effort" price and to facilitate the remaining debt repayments, so as to protect consumers and prevent their becoming over-indebted for long periods, say MEPs.
 
MEPs adopted the final wording of the text, but before approving the rules overall, Parliament wants EU member states to undertake to ensure that they are properly enforced on their territory, i.e. throughout the EU.
 
   
We use cookies to ensure we give you the best browsing experience on our website. Find out more on how we use cookies and how you can change your settings.

Cookies

What are cookies ?

A cookie is a small text file that a website saves on your computer or mobile device when you visit the site. Cookies are widely used in order to make websites work, or work more efficiently, as well as to provide information to the owners of the site.

How do we use cookies?

Website use Google Analytics, a web analytics service provided by Google, Inc. ("Google") to help analyse the use of this website. For this purpose, Google Analytics uses"cookies", which are text files placed on your computer.

The information generated by the cookies about your use of this website - standard internet log information (including your IP address) and visitor behaviour information in an anonymous form - will be transmitted to and stored by Google including on servers in the United States. Google will anonymize the information sent by removing the last octet of your IP address prior to its storage.

According to Google Analytics terms of service, Google will use this information for the purpose of evaluating your use of the website and compiling reports on website activity.

We not use, and not allow any third party to use the statistical analytics tool to track or to collect any personally identifiable information of visitors to this site. Google may transfer the information collected by Google Analytics to third parties where required to do so by law, or where such third parties process the information on Google`s behalf.

According to Google Analytics terms of service, Google will not associate your IP address with any other data held by Google.

You may refuse the use of Google Analytics cookies by downloading and installing Google Analytics Opt-out Browser Add-on. The add-on communicates with the Google Analytics JavaScript (ga.js) to indicate that information about the website visit should not be sent to Google Analytics.

Cookies are also used to record if you have agreed (or not) to our use of cookies on this site, so that you are not asked the question every time you visit the site.

Google Analytics Opt-out Browser Add-on

How to control cookies?

You can control and/or delete cookies as you wish. You can delete all cookies that are already on your computer and you can set most browsers to prevent them from being placed.

All about cookies

Managing cookies in your browser

Most browsers allow you to:
  • see what cookies you have got and delete them on an individual basis
  • block third party cookies
  • block cookies from particular sites
  • block all cookies from being set
  • delete all cookies when you close your browser

If you chose to delete cookies, you should be aware that any preferences will be lost. Also, if you block cookies completely many websites (including ours) will not work properly and webcasts will not work at all. For these reasons, we do not recommend turning cookies off when using our webcasting services.
X