EU plans raise home foreclosure risk

Article reported that United Kingdom homeowners could face higher mortgage costs and greater risk of foreclosure from 2013 because of an obscure clause in the proposed bank capital directive being negotiated by the EU.

As part of a large reform package that sought to make banks safer and regulation more uniform, the draft directive declares that all European Union loans must be treated as if they are in default when they are 90 days in arrears. While this is common practice in much of the 27-nation bloc, it would overrule UK rules that give retail mortgage borrowers up to 180 days.

Website: British Bankers’ Association http://www.bba.org.uk/

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