EUR-Lex Access to European Union law

Back to EUR-Lex homepage

This document is an excerpt from the EUR-Lex website

Document 32014L0017

Buying residential property – rules on loans

Buying residential property – rules on loans



Directive 2014/17/EU –rules on home loans


Known as ‘the Mortgage Credit Directive’, it aims to ensure that all consumers who take out a mortgage to purchase a property are adequately informed and protected against the risks.


  • The directive applies to all loans made to consumers for the purpose of buying a home, including loans that are guaranteed by a mortgage or by another comparable security.
  • It provides for better information to consumers on available mortgage products including:
    • an obligation on lenders to provide consumers with a standardised information sheet (European Standardised Information Sheet - ESIS) which allows them to shop around to identify the right product for them;
    • inclusion in the ESIS of worst-case scenarios regarding variable interest and foreign currency loans so as to alert consumers of potential interest rate variations;
    • a guaranteed period of reflection or a right of withdrawal for borrowers prior to being bound by the credit agreement;
    • new EU-wide standards to assess the credit worthiness of mortgage applicants so as to ensure that borrowers can meet their repayment obligations.
  • The directive establishes business conduct principles.
    • These ensure that lenders and credit intermediaries (i.e. persons or companies providing information and assistance to consumers looking for a mortgage loan) act honestly and transparently in the consumer’s interests.
    • Lenders and intermediaries must ensure that their staff have up-to-date knowledge on loan agreements and that customers are provided with all the necessary information before signing any agreement.
  • Consumers have a general right to repay their loans early, thus benefiting from a reduction in the total remaining cost of the mortgage. In such cases, EU countries may entitle lenders to fair compensation for any costs directly and exclusively linked to early repayment.
  • The directive establishes an EU passport regime for credit intermediaries. This means that in principle once authorised in one EU country, a credit intermediary is allowed to provide services throughout the EU.


It has applied since 20 March 2014. EU countries had to incorporate it in national law by 21 March 2016.


For more information, see:


Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, pp. 34–85)

Successive amendments to Directive 2014/17/EU have been incorporated into the original text. This consolidated version is of documentary value only.

last update 19.07.2017