Hungary's Ruling Party Proposes Mortgage Relief Legislation, MTI Reports

Hungary’s ruling Fidesz party presented a plan to strengthen the position of homeowners against the banks that hold their mortgages, MTI reported today, citing members of parliament Antal Rogan and Lajos Kosa.

The party would ban unilateral changes to mortgage contracts and “arbitrary” rate increases, while forcing banks to use a mid-rate for conversions between foreign currencies and the forint and allowing the early repayment of loans without penalty, the news service said.

The duration of mortgages would be “automatically’ extended by five years upon the debtor’s request, and banks would be barred from charging penalties and extra charges for non-payment, MTI said.

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