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What is Responsible Lending? The EU Consumer Mortgage Credit Directive in the UK and the Netherlands

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  • Vanessa Mak

Abstract

This article assesses if and how the recently adopted EU Directive concerning consumer mortgage credit agreements (Directive 2014/17/EU) contributes to defining a common “responsible lending” policy in the varied contexts of the Member States’ mortgage markets. It addresses that question by analysing how the Directive’s rules will complement or change the regulatory regimes of the UK and the Netherlands. Drawing on data from economics studies regarding household debt, affordability of credit, and the institutional framework of mortgage market regulation, the article seeks to explain how different regulatory choices in these legal systems are informed by the sources of risk that regulators seek to control. Even with the harmonized rules laid down in the Mortgage Credit Directive, the modalities of “responsible lending” will still differ significantly between EU Member States. Nevertheless, the study of Member States’ policies may reveal common concerns and directions on how to address them. Copyright The Author(s) 2015

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  • Vanessa Mak, 2015. "What is Responsible Lending? The EU Consumer Mortgage Credit Directive in the UK and the Netherlands," Journal of Consumer Policy, Springer, vol. 38(4), pages 411-430, December.
    • Handle: RePEc:kap:jcopol:v:38:y:2015:i:4:p:411-430
    DOI: 10.1007/s10603-015-9301-9
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    References listed on IDEAS

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    1. repec:ucp:bkecon:9780226081946 is not listed on IDEAS
    2. Sarah Nield, 2015. "Mortgage Market Review: “Hard-Wired Common Sense?”," Journal of Consumer Policy, Springer, vol. 38(2), pages 139-159, June.
    3. Rinaldi, Laura & Sanchis-Arellano, Alicia, 2006. "Household debt sustainability: what explains household non-performing loans? An empirical analysis," Working Paper Series 570, European Central Bank.
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    Cited by:

    1. Irena Pyka & Aleksandra Nocoń, 2021. "Responsible Lending Policy of Green Investments in the Energy Sector in Poland," Energies, MDPI, vol. 14(21), pages 1-25, November.
    2. M. Lundholm, 2021. "Compensation and Socio-Economic Status of Borrowers in Foreclosure: Evidence from Swedish Micro-data," Journal of Consumer Policy, Springer, vol. 44(1), pages 95-116, March.
    3. John Linarelli, 2020. "Debt in just societies: A general framework for regulating credit," Regulation & Governance, John Wiley & Sons, vol. 14(3), pages 409-427, July.
    4. Y. Svetiev & E. Dermineur & U. Kolanisi, 2022. "Financialization and Sustainable Credit: Lessons from Non-Intermediated Transactions?," Journal of Consumer Policy, Springer, vol. 45(4), pages 673-698, December.
    5. C. E. Jager, 2017. "A Question of Trust: the Pursuit of Consumer Trust in the Financial Sector by Means of EU Legislation," Journal of Consumer Policy, Springer, vol. 40(1), pages 25-49, March.
    6. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.

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