From Prague Daily Monitor: EC wants stricter mortgage conditions

Czech Point 101 December 11, 2014 @ 10:37AM

“The European Commission wants to unify mortgage rules in all EU states. The proposal would grant mortgage loans of up to 40% of the value of a property, while the majority of current mortgages cover between 70% and 80%. With higher mortgages, clients would be bound to much higher interest, the Euractiv website reported. While some Czech bankers cannot imagine such a practice, Jan Sadil, head of Hypoteční banka, said that the new regulation is interpreted wrong as it is aimed to give banks more capital to cover riskier mortgages.”

CP101: Wow, would have to see all the details but this seems at first a really negative move blow to an already weakened Czech property market.

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