Nicosia: Increased protection net for borrowers who want to get a mortgage, sets a harmonizing bill.
There is an obligation to evaluate the borrower's creditworthiness before granting credit.
Banks will provide free information to consumers and at the same time inform them about the practices that precede the granting of a loan and the risks they undertake.
The bill lays down the rules to be contained in an advertisement for the provision of mortgages, for the provision of pre-contractual information to the consumer through the standard European information sheet, and for the calculation of the total annual real interest rate for the purpose of comparing loans from various creditors. At the same time, the borrower is given the right to repay his loans early. In fact, in the case of foreign currency loans, banks should record possible fluctuations in the exchange rate which could affect the amount payable by the consumer.
Source: The Liberal