Stats › Valuation › Mortgage rules
Europe's mortgage directive assumes a 170,000 euro loan when it computes the rate a borrower sees, and sets no cap on early repayment compensation
| Rule | Figure | Provision |
|---|---|---|
| Period to compare offers | at least seven days, as a reflection period, a withdrawal right, or a combination | Art 14(6) |
| Member state option during a reflection period | may bar acceptance during the first 10 days | Art 14(6) |
| Information sheet | one document, 15 numbered sections, prescribed model text, risk warnings highlighted | Art 14(2) and Annex II |
| Assumed drawdown | the full amount, immediately | Annex I Part II |
| Assumed ceiling where none is stated | 170,000 euro, or 1,500 euro for certain non property credit, overdrafts and cards | Annex I Part II |
| Overdraft of unknown duration | 3 months | Annex I Part II |
| Bridging loan | 12 months | Annex I Part II |
| Open ended property related credit | 20 years from first drawdown, against one year for other open ended credit | Annex I Part II |
| A year | 365 days, 366 in a leap year, or 52 weeks, or 12 equal months of 30.41666 days | Annex I Part I |
| Precision of the published rate | at least one decimal place | Annex I Part I |
| Early repayment | a right, with a cost reduction; compensation must be fair, objective, no sanction, and not exceed the creditor's financial loss | Art 25 |
| Arrears | reasonable forbearance before foreclosure; default charges no greater than necessary; best efforts price on foreclosure | Art 28 |
Directive 2014/17/EU. The original text served only to Article 20(3) and the consolidated version of 1 January 2018 served from Article 23 onward plus both annexes, so the table is assembled from two renderings.
A month is assumed to be 30.41666 days, an open ended property loan to run twenty years, and the rate to be shown to one decimal place. Only eight member states transposed the directive on time; the last did so in June 2019.
170,000 euroAssumed loan ceiling for the rate calculation
20 yearsAssumed term of an open ended property loan
none at European levelCap on early repayment compensation
8Member states transposing on time
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