Charlie McCreevy, the European Union’s internal market commissioner, told a conference on responsible lending in Brussels on Thursday that the difficulties that had arisen after domestic customers were lured into taking out mortgages denominated in other currencies were “a big concern”.

He confirmed that the Commission wanted to introduce “specific and penal” capital requirements on lenders to prevent the granting of excessive loans to private households when these are denominated in a currency other than that of the borrower’s income.

From the Financial Times

Rhyming with what I’ve said before, banks have an unfair advantage over regular customers when it comes to negotiating the rates of mortgages and loans. Reason enough for customers to be allowed to renegotiate or walk away.

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