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.”