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30th November 2021
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Cyprus urged to implement mortgage directive

Cyprus urged to implement mortgage directiveCYPRUS along with eight other EU member states has been given two months to fully transpose the Mortgage Credit Directive (Directive 2014/17/EU) into national law if it wants to avoid going to court.

Following many years of ‘devious’ practices by banks and intermediaries throughout EU member states, the Directive sets out common standards to enhance the protection of consumers taking out loans to buy residential property.

Member States were required to transpose the directive into national law by 21 March 2016. But having missed the original deadline Cyprus and eight other EU Member States were sent letters of formal notice in May 2016 requiring them to implement the rules within six months.

Yesterday’s request takes the form of a reasoned opinion. If Cyprus fails to act within two months, it may be referred to the European Court of Justice.

The law will guarantee that citizens of EU member states have “clearer and understandable information” on mortgages thanks to the introduction of a ‘European standardised information sheet’ (ESIS), which will allow borrowers to “understand better the risks” associated with their mortgage agreement as well as “compare offers and shop around for the best product to suit their needs at the best price”.


  1. I’ve just looked at the Directive and it seems like it will affect only future loans and not the loans issued prior to directive. Is that right?

    Ed: Yes – the Directive is not retrospective.

  2. Of course, you took out a loan and have a mortgage on it …but you didn’t know “what it meant”, because your banker has “duped” you not explaining what it was exactly…:D

    And of course people need a EU law forcing bankers to “explain” them what is the role of a mortgage or of a guarantor…:D

    Please, give me a break…:D

  3. Steve R, I agree with you! The banks (alpha bank Paphos certainly have) have broke so many basic rules it’s unreal and would be severely punished if over her in the U.K. Yet our MPs, and Cypriot authorities still ignore the damage that these unscrupulous people are causing. Please anyone reading these comments think Very Very carefully about buying in Cyprus. The laws over there are certainly not like the UK as they suggest and it’s an absolute joke when you use a so called “independent” Cypriot lawyer to help look after you.

  4. Just a bit too late for the people who have already been duped. No action has been taken against the banks regarding these people

  5. @ Nigel
    Must be a typo as you mention (clear) and (transparent) guidelines if not mistaken these words are not part of the Cypriot establishment practices. Deadlines mean absolutely nothing to the Leadership of ROC law to their own.

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