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Government call to “kill off” European loan directive

The Government has called on the mortgage market to fight the European Commission’s mortgage credit directive and “kill it dead”.

The directive, which was published in March, aims to standardise intermediary remuneration disclosure, lending practices and the information given to borrowers across the EU’s 27 member states.

Speaking at Cicero Consulting’s Treasury ministers’ question time in London this week, Treasury financial secretary Mark Hoban called on the mortgage market to fight the directive in Europe.

He said: “The mortgage market looks very different across the EU and having a detailed directive seeking to regulate behaviour in all the member states does not stack up.

“To kill this dead, we need the help of political colleagues across Europe. Often, the industry focuses a lot on the UK Government rather than also lobbying the other 26 member states, the European Parliament and the European Commission.”

Hoban was responding to a question from John Charcol senior technical manager Ray Boulger, who said the proposals are “flawed”.

A Council of Mortgage Lenders spokeswoman says: “We are concerned about the negative impact the directive could have on the UK mortgage market and are working closely with the Treasury and lobbying the European Parliament and other European stakeholders directly.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Standardise disclosure s to customers across the market. Sounds like somethign the FSA could have come up with in the UK. Tell you what ‘ConDem’ government. You scrap RDR, we’ll figt the EU !!!

  2. Why would we want to fight something that makes mortgages more standardised and easier to understand for customers across a singlemarket ? Seems like an about turn on normal practice here. Whereas the industry is generally agred that RDR is blatently in no customers interest and yet the Government is not ready to listen to the industry in relation to that. Don’t count on my support !

  3. Yes of course we’ll fight and support you Mr Hoban ……. when of course you come to your senses and start to fight with us against the seriously damaging RDR!!

  4. Is this admitting that in the face of the EU, the Government, Ministers, MP’s, Treasury and Regulators, could not organise that well practised act of organising a w—- up in a brewery, even if as usual somebody else is paying for it.

    I know its not important, but what are we over paying our representitves for?

  5. Des this mean that the Key Facts will need to be printed in 27 languages ?

  6. Sounds a brill idea, everything the FSA have done in the last 10 years has cost the industry and consumers dear. One less thing for Hoban and his merry band to completly screw up!

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