Under the new mortgage credit directive consumers would be afforded more transparency when seeking a mortgage.
However, there would also be tougher credit assessment rules for applicants.
The financial crisis has meant banks and credit institutions have become much stricter in approving mortgages.
However the new directive, which has been pushed under the Irish EU presidency, would see consumers enjoying more transparency, as well as greater harmonisation across the EU in ensuring that the principles underpinning the question of credit-worthiness are toughened.
The new directive wouldn’t, however, be prescriptive in setting out how much a applicant would have to earn before a mortgage is approved.
Negotiations between the European Parliament, the Irish presidency and the European Commission on the directive are expected to be concluded later today
If member states approved the directive it will come into force in two years time.