EU introduces draft mortgage law

A new EU law on mortgages could influence late payments, arrears and repossession rules currently being revised by the Irish Central Bank.

It will have a significant effect on borrowers, those offering mortgages and their brokers. The final details of the draft legislation were negotiated with the European Parliament by the Irish officials in their capacity as EU presidency holders last night.

Finance Minister Michael Noonan, welcoming the agreement, said: “We have seen in Ireland how practices in relation to mortgage credit have contributed to the crisis in the financial system. The new rules just agreed will give consumers much better information about mortgage applications and offers”.