Adopting a report by MEP John Purvis, which responded to a Commission discussion paper on the mortgage market, MEPs have urged the Commission to focus on targeted measures to improve consumers’ dealings in the market.
The paper by Purvis called for greater integration of professional organisations, to establish a common property valuations standard across the EU, as well as helping to promote the role of the mortgage broker.
The study also called for changes to be made to mortgage credit contracts, and an examination of tax barriers that could hinder the growth of an integrated market. The objective of the changes are part of the wider drive to implement an open and compatible funding market designed to boost efficiency and reduce costs.
Commenting on the proposals, MEPs also stressed the importance of ‘harmonisation of provisions for pre-contractual information’.
The results are to go before the financial industry and interested consumer groups for feedback and will form the basis for a Commission White Paper, set for publication in May 2007.
Mike Pendergast, IFA at Zen Financial Services, said the differences between the markets could cause problems. “In principle it is a good idea, but in practice it will be a lot harder because of the market differences. It will take a long time to integrate the separate markets.”
