7. Calls on financial institutions not to provide consumer credit which is secured by the consumer’s house where the consumer does not have an adequate wage or salary and to only provide consumer credit where the consumer’s creditworthiness has been determined – and, where applicable, suitable collateral has been acquired – in order to ensure an appropriate level of risk for both the consumer and the provider;

If the feature contains any additional credit, then this section must explain to the consumer: the total amount of credit (including the credit secured by the mortgage or comparable security); whether the additional credit is secured or not; the relevant borrowing rates; and whether it is regulated or not.

This Directive lays down a common framework for certain aspects of the laws, regulations and administrative provisions of the Member States concerning agreements covering credit for consumers secured by a mortgage or otherwise relating to residential immovable property, including an obligation to carry out a creditworthiness assessment before granting a credit, as a basis for the development of effective underwriting standards in r ...[+++]elation to residential immovable property in the Member States, and for certain prudential and supervisory requirements, including for the establishment and supervision of credit intermediaries, appointed representatives and non-credit institutions.

In view of the formidable challenges posed by climate change, there is an urgent need to exempt from this proposal renovation loans secured by mortgage, which have nothing to do with consumer credit but should be treated as mortgage loans.

loans secured by residential real estate or shares in Finnish residential housing companies as referred to in point 46 up to the lesser of the principal amount of the liens that are combined with any prior liens and 80% of the value of the pledged properties or by senior units issued by French Fonds Communs de Créances or by equivalent securitisation entities governed by the laws of a Member State securitising residential real estate exposures provided that at least 90% of the assets of such Fonds Communs de Créances or of equivalent securitisation entities governed by the laws of a Member State are composed of mortgages that are combined with any prior liens up to the lesser of the principal amounts due under the units, the principal amoun ...[+++]ts of the liens, and 80% of the value of the pledged properties and the units qualify for the credit quality step 1 as set out in this Annex where such units do not exceed 20% of the nominal amount of the outstanding issue.

The European Commission has already taken steps in order to improve the quality of pre-contractual information available to consumers, for instance in the Standard European Consumer Credit Information Sheet, annexed to the new Consumer Credit Directive,[23] and in the Key Investor Information document, being tested for the revision of the UCITS Directive.[24] In the area of mortgages, the examination of the European Standard Information Sheet aims to improve the presentation of pre-contractual information to consumers.[25] The Commission Communication on Packaged Retail Investment Products proposes measures to deliver clear, comparable p ...[+++]re-contractual information to investors of these products.[26] The impact of these measures is to standardise the presentation of pre-contractual information in a way which makes it easier for the consumer to compare the offers of different providers.