The European Commission says it is confident that the introduction of the European standardised information sheet for brokers and lenders will not force the UK to water down its key facts illustration document.
In March, the EC published its draft mortgage credit directive. It said lenders and brokers will be required to issue an Esis, which will replace the key facts illustration, to allow consumers to easily compare mortgages between different providers. It will set out the main features of the loan, including the loan type, duration and interest rate, as well as details about repayments and any one-off costs.
In April, the Association of Mortgage Intermediaries warned that the Esis leaves off important information contained in the KFI such as whether or not a sale is advised or non-advised and if a deal is done through an independent or tied broker.
But speaking to Money Marketing in Brussels, EC internal market and services spokeswoman Chantal Hughes says: “Our objective is to ensure that every consumer benefits from a strict minimum standard but it is always possible for individual lenders or governments to go further and require more information.”
The EC says that banning non-advised mortgage sales was never considered as part of the directive.
In February, the AMI suggested that banning execution-only mortgage sales was under discussion at the commission. But Hughes says: “It was not on the table. That is not the intention of our proposals.”
Emba group sales and marketing director Mike Fitzgerald says: “It is a shame if we have to follow the Europeans on the Esis because it will mean issuing a new piece of paper, when the piece of paper we have got is better. What the Europeans should be doing is adopting our KFI.”