Gay Mitchell
Ceist:254 Mr. G. Mitchell asked the Minister for Finance if press reports (details supplied) that the EU has restricted mortgages to 90% for residential purchases are accurate. [16523/01]
Written Answers. - Mortgage Restrictions.
My Department has looked into the matter and found no basis for the suggestion that the EU intends to restrict purchasers to borrowing no more than 90% of the price of a residential property. Perhaps the article in question related to a recommendation published by the European Commission in March 2001 on a voluntary code of conduct on pre-contractual information which invites lenders to provide consumers with general information regarding their lending procedures and a standardised European information sheet which sets a template for mortgage offers. The recommendation was negotiated under the auspices of the Commission by associations and federations representing lenders, on the one hand, and consumers, on the other.
The general information would include such items as the name and address of the lending institution, the purposes for which a loan can be used, forms of surety accepted, a description of the types of home loans available, types of interest rate, the possibility and conditions pertaining to repayment, rules pertaining to valuation, general information on tax relief and reflection periods, where relevant.
The standardised information sheet for mortgage offers would not be a legally binding offer. It would include a description of the particular mortgage product being offered, noting the surety. It should make clear whether the home loan terms are dependent on the consumer supplying a certain amount of capital. Also included on this sheet are the nominal and annual percentage interest rates, amount of credit advanced, the duration of the loan agreement, insurance requirements, early repayment terms, information on internal complaint schemes and so on.