A move to give home buyers better protection when borrowing has passed its first hurdle – but some still fear it's the wrong way to go.

Mortgage regulation to help home owners

https://api.multimedia.europarl.europa.eu/documents/20125/16005724/n001-120607-001-en_mf.srt

Bad mortgage lending practices  were partly to blame for the crisis.

That's why MEPs have discussed proposals  to smooth out national differences

and ensure buyers  know what they're getting.

The rapporteur wants borrowers  to have more choice of safe products.

Parliament is saying  that the mortgage market

must be a strong, transparent,  professional, reliable market

with a high level  of protection for consumers.

The Economic Affairs Committee vote  was complicated

and led to much amusement among MEPs  which some found inappropriate.

They were more concerned  the proposals could be too proscriptive.

I'm concerned some of the language could  close down some first-time-buyer products.

Given the wide diversity  of the EU housing market

and the variety of mortgage traditions,  a common approach is hard to find.

especially with competitive interest rates  and foreign currency loans.

This was a positive contribution  that really changes something.

We'll see that in the negotiations,  but the EP took a step forward today.

Reckless lending practices  helped fuel the property bubble.

Now many building projects stand empty,  while buyers can't afford repayments.

The new proposals are mainly aimed  at helping consumers wanting to buy.

We would like to ensure that no more  European consumers are trapped in loans

that they cannot repay  because the sum is too great

or not adapted to their needs  or expectations.

The rapporteur said the new legislation  should reduce the cost of borrowing,

and ensure the market is safer,  more inclusive and open to all.

But this was a first step –  it'll take time.