My mortgage application was rejected without explanation. Am I entitled to reasons?

What the Law Says

EU law requires lenders to provide transparent, timely, and meaningful reasons when refusing credit, including mortgages.

The EU Credit Agreements Directive (2008/48/EC), as amended and applied through national implementation, mandates transparency in consumer credit decisions. Article 19 specifically requires creditors to inform consumers of the decision on their credit application and, if refused, to provide the main reasons without delay.

Additionally, the European Commission Regulation (EU) 2019/1020 on market surveillance reinforces obligations on financial service providers to ensure fair treatment and traceability of decisions affecting consumers. Under the General Data Protection Regulation (GDPR), you also have the right to obtain confirmation of whether personal data (e.g., credit scores or automated decisions) was used — and, if so, meaningful information about the logic involved (Art. 15(1)(h)).

Statutory Text

Where the creditor decides not to grant credit, it shall inform the consumer thereof and give the main reasons for its decision without undue delay.

— Directive 2008/48/EC, Art. 19 — Right to information on credit decisions

Statutory Text

the data subject shall have the right to obtain... meaningful information about the logic involved, as well as the significance and the envisaged consequences of such processing

— Regulation (EU) 2016/679 (GDPR), Art. 15(1)(h) — Right of access

Sources