European UnionThe bank gave me a mortgage without properly checking if I could afford it. Is this a breach?
Yes, it may be a breach: EU law requires lenders to assess your creditworthiness and ability to repay before granting a mortgage.
What the Law Says
The EU Mortgage Credit Directive (2014/17/EU) sets binding rules for all member states on responsible lending — including mandatory affordability assessments before granting residential mortgages.
Under EU law, lenders must conduct a thorough assessment of your creditworthiness and ability to repay the loan throughout its term — including under adverse scenarios like interest rate rises or income loss.
This assessment must be based on reliable, up-to-date information — such as your income, expenses, existing debts, and financial obligations — and cannot rely solely on self-declared data without verification.
The directive applies to all credit agreements secured by residential immovable property granted to consumers in the EU, and member states were required to transpose it into national law by 21 March 2016.
Statutory TextCredit institutions shall assess the creditworthiness of the consumer before granting any credit.
— Directive 2014/17/EU, Art. 8(1) — Assessment of creditworthiness
Statutory TextThe assessment shall be based on sufficient information… obtained from the consumer and, where appropriate, from other sources.
— Directive 2014/17/EU, Art. 8(2)
What to Do
Gather evidence: pay slips, bank statements, loan application forms, and any correspondence showing the bank’s assessment (or lack thereof).
Contact your national financial ombudsman or consumer protection authority — they can investigate whether the lender breached national rules implementing Directive 2014/17/EU.
If you’re in arrears or at risk of repossession, ask your lender for a sustainable repayment plan — many EU countries require lenders to offer forbearance measures where affordability was improperly assessed.
Consider legal advice: depending on your country, you may have grounds to challenge enforcement, seek loan restructuring, or claim damages.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.