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Personal finance

Updated : 01/02/2012

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Credit, loans and mortgages

Mortgages

A bank in another EU country will make a commercial decision on whether or not to accept your mortgage application, on the basis of the risk profile of the proposed loan.

Banks may not discriminate against any EU citizens on grounds of nationality.  However, your country of residence or the location of the property to be mortgaged can often make it difficult to obtain a mortgage.

Banks frequently refuse to grant mortgages for properties located in another country, or to people whose source of income or place of residence is not in the country where the bank is established.

Sample story

Ask your bank about their risk policy for properties outside national borders

Soon to start a new job in the United Kingdom, Ismail sold his apartment in France. He then wanted to obtain a loan from his French bank in order to buy an apartment in the United Kingdom.

The bank was unwilling to grant him a loan if he used a property based outside France as collateral.

It is entirely up to the bank whether or not to accept a loan with a security based in another country. Many banks see this as an unacceptable risk in case of default on loan repayments.

Consumer credit

As with mortgages, banks may be reluctant to lend to residents of countries other than the one the bank is based in or even to lend to same-country residents who work in another EU country. 

Banks are free to set these kinds of limits to their lending. However, they must not discriminate against someone from an EU country on the basis of nationality.

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Footnote

In this case, the 27 EU member states + Iceland, Liechtenstein and Norway

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