EU to finalise mortgage rules

City A.M. Reporter
EU negotiators are expected to finalise the bloc’s first common rules on mortgage lending today, in an attempt to avoid a repeat of property bubbles that helped fuel the Eurozone’s debt crisis.

The legislation will force lenders to check the creditworthiness of potential customers and their ability to repay, effectively banning self-certified or so-called liar loans. Rules would also make it illegal for those carrying out credit checks to have their pay linked to the number of mortgages they approve.