EU draws up draft mortgage proposals

The recent financial crises and subsequent economic fallout within Europe has highlighted the damage that irresponsible lending can have.

A new legislative proposal from the European Commission has been tabled with the intention of preventing this practise from happening in the future.

Under the guidelines, borrowers will enjoy a higher level of protection through robust rules concerning advertising, pre-contractual information, advice, creditworthiness assessment, and early repayment.

The news may lead to an increase in the number of individuals looking to buy property in Spain, with current low prices in the country meaning that there are plenty of opportunities to pick up a bargain.

Internal market and services commissioner Michel Barnier commented: "During the boom years, we saw examples of borrowers and lenders acting on the assumption that the good times could not end.

"The draft set of rules presented today is designed to ensure a high standard of pre-contractual information and improved lending practices across Europe."

Recent figures from Moneycorp and Rightmove found that Spain remains one of the most popular destinations for British buyers.

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