EBA is consulting on the benchmark rate under the Mortgage Credit Directive (MCD), which requires creditors to create two illustrative examples in the European Standardised Information Sheet for variable rate mortgages on the basis of a benchmark rate that the EBA specifies. EBA has developed a formula, which it thinks is preferable to setting an absolute rate, and which is based on an appropriate national rate. It seeks views on whether the formula will give an appropriate rate which will properly warn consumers about the variability in mortgage rates. It seeks views by 20 November.
(Source: EBA Consults on MCD Benchmark Rate)