Mortgage market regulation: Europe

Despite several European Union (EU) initiatives, there is only limited pan-European mortgage market regulation. The EU strategy can be characterised as one of parallel liberalisation and consolidation. This article highlights the key differences in regulation among European mortgage markets. Mortgage market integration has been limited despite factors pushing for less national and more supranational regulation. We should still speak of European mortgage markets rather than of one European mortgage market. Integration has been slow for various reasons: tax, law, and cultural and structural differences play a part, but the limited market share of mortgage intermediaries and the unequal treatment of foreign mortgage lenders in some countries also form a barrier.