All about the European Standard Information Sheet
FEB 05 2019 | PROPOSED BY OUR PARTNER ING LUXEMBOURG
Since December 23, 2016, all credit institutions in Luxembourg are required to provide the borrower with a certain amount of standardized information at the level of the European Union. What are they and how do they better protect the consumer when he or she has a home loan?
To answer these questions, it is necessary to explain the general context in advance. The European Standardized Information Sheet (FISE), which incorporates the information mentioned above, is part of the legal arsenal introduced by the European Mortgage Credit Directive 2014/17 / EU on Mortgage Credit Directive. ) and transposed into Luxembourg law by the Law of 23 December 2016. The aim is to unify European rules on the European residential market and make the sector more transparentand competitive.
Today, thanks to this directive, European consumers wishing to take out a mortgage are entitled to better information before signing the credit agreement, have the right to think or retract before or after the signing of the credit agreement. credit and can more easily make early repayments.
A 14-day cooling off period and a penalty limitation
Thus, the European directive sets a minimum reflection period of 7 days for any consumer who receives a mortgage proposal. Depending on the choice of the Member States, this period may be expressed either before the conclusion of the credit agreement or after the conclusion of the credit agreement or by a combination of the two systems. In Luxembourg, you have a reflection period of 14 days to validate or not the offer of credit that you proposed the bank. Once you have signed the contract, you can not retract.
The EU Directive also provides the possibility for Member States to regulate the compensation due in the event of early repayment. In Luxembourg, if you have taken out a loan for the purchase of an effective and principal home for an uninterrupted period of at least two years, the compensation paid to the bank can not exceed 6 months of interest on the capital repaid at each prepayment 1 .
It should be noted that despite the entry into force of the Law at the end of December 2016, its provisions are applicable to all credit agreements concluded since 21 March 2016, the deadline for transposition into national law of the European directive.
Specifically, this form must, among other things, contain the following information:
> your identity and the period of validity of the offer;
> the details of the lender and, where applicable, the credit intermediary;
> the main characteristics of the loan (amount, duration, type of loan, type of interest rate applicable, total amount to repay, guarantee ...);
>interest rates and other fees (credit debtor rate and all costs directly or indirectly related to this offer);
> the number and periodicity of each payment;
> the amount of each payment;
> the indicative schedule of depreciations, specifying, for each maturity, the breakdown between the capital to be repaid, interest and costs to be paid and the amount remaining due at the end of this maturity;
> the additional obligations that you must respect to benefit from the credit offer (domiciliation of wages, subscription of a product or a service ...);
> the conditions of early repayment ;
> the consequences of non-compliance with loan contract commitments such as late payment, non-payment or non-domiciliation of income if this was specified in the credit agreement.
For more information, please visit www.ing.lu/immo or visit us at the branch.
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1 . It should be noted that despite the entry into force of the Law at the end of December 2016, its provisions are applicable to all credit agreements concluded since 21 March 2016, the deadline for transposition into national law of the European directive.