Decision on specifying the benchmark rate under the Mortgage Credit Directive

status: Adopted and published on the Official Journal

The Mortgage Credit Directive (MCD) requires creditors to create two illustrative examples in the European Standardised Information Sheet (ESIS) for variable rate mortgages, including a warning that the variability could affect the actual level of the Annual Percentage Rate of Charge (APRC). The MCD provides that in certain circumstances the two illustrative examples are to be calculated by creditors using a benchmark rate specified by the EBA. In this Consultation Paper, the EBA sets out its proposal for calculating the EBA benchmark rate to be used on those circumstances. To that end, the EBA has developed a formula to calculate the rate and would now like to hear the views from consumer and industry stakeholders on the approach it is proposing.

Press Release

Consultation Papers