Tighter rules for mortgage lending agreed by EU

New rules will mean that borrowers across the European Union (EU) will be refused a mortgage if they fail a standard affordability assessment.

The European Commission said its new mortgages directive would prevent any repeat of reckless home loan lending of the past.

The agreement also includes plans to make it easier for consumers to shop around for their loan.

A lenders' group said the changes would have little impact on the UK system.

The Council of Mortgage Lenders (CML) said that UK rules, which were bolstered recently, already had the greater consumer protection and information in place.