The European Standardised Information Sheet (ESIS) is a document that provides detailed information about a mortgage product to potential borrowers within the European Economic Area (EEA). It’s a standardised format designed to make it easier for borrowers to compare different mortgage products across different countries and lenders.
The ESIS was introduced as part of the EU’s Mortgage Credit Directive (MCD) in 2016 with the intention of creating a single market for mortgages within the EEA and ensuring consumers receive the same level of protection across all member states.
Just like the Key Facts Illustration (KFI) in the UK, the ESIS contains critical information about the mortgage, such as:
- Identity and Contact Details: Details about the lender and, where relevant, the credit intermediary (like a broker).
- Main Features of the Loan: The amount of credit, the duration, the type of credit, and the total amount payable.
- Interest Rate and Annual Percentage Rate of Charge (APRC): Information about the applicable interest rate, as well as the APRC which illustrates the total cost of the loan, including interest and any associated fees.
- Frequency and Number of Payments: Details on how often and how many payments the borrower will need to make.
- Illustrative Amortisation Table: A table showing the amount of each repayment, split into capital repayment, interest payment, and outstanding capital.
- Additional Obligations: Information about obligations the borrower must meet to obtain the advertised interest rate, or to avoid having to pay more for the loan.
- Early Repayment: Information about the borrower’s right to repay the loan early, and any related costs.
- Complaints: Information on how the borrower can make a complaint about the lender or credit intermediary.
In the UK, lenders may provide both a KFI and an ESIS when discussing a mortgage, especially if the mortgage product falls under the scope of the MCD. After Brexit, the UK has continued to maintain similar standards for mortgage information disclosure.
