Creditworthiness assessment and mortgage credit

Abstract

The scope of the lender’s obligation to assess solvency in the context of mortgage loan contracts regulated by Directive 2014/17 is analyzed in this paper. Particular attention is given to the problem of the consequences arising from the non-fulfillment of such obligation by the lender. We make proposals to interpret the rule in order to transpose the European Directive into Spanish law and to enforce the obligation of the lender to grant loans responsibly.