The bank changed my mortgage interest rate without proper notice. What are my rights?

What the Law Says

EU law protects borrowers from unexpected or unclear interest rate changes in mortgage contracts. Key rules require transparency, fairness, and advance notice.

Under Directive 2008/48/EC on consumer credit, lenders must provide clear, concise, and timely information before entering into or amending a credit agreement — including any variable-rate mechanism and how changes will be communicated.

Directive 93/13/EEC on unfair terms in consumer contracts prohibits clauses that cause a significant imbalance between the parties — such as unilateral rate changes without adequate notice or justification.

Article 10(2) of Directive 2008/48 states that 'any change to the annual percentage rate of charge… shall be notified to the consumer in writing or on another durable medium no later than 30 days before its application', unless the change results from an objective, pre-defined index (e.g., EURIBOR) clearly explained in the contract.

If the rate change relies on a discretionary or non-transparent mechanism — or if notice was insufficient, unclear, or delivered too late — it may be unenforceable under national implementation of these directives.

Statutory Text

any change to the annual percentage rate of charge… shall be notified to the consumer in writing or on another durable medium no later than 30 days before its application

— Directive 2008/48/EC, Art. 10(2) — Consumer Credit

Sources