As part of that, mortgage contracts will have to be provided to clients seven days prior to signing.

Banks will not be able to change interest rates on existing contracts for three years. Longer-term interest rate conditions will have to be approved by the MNB.

The bill states that borrowers can reject any changes that they do not accept or can cancel the loan at no extra charge.

The default interest rate cannot exceed twice the normal interest rate of the loan.

The total fee index THM will be limited at 245 points above the base rate on ordinary loans and 395 points above the base rate concerning overdrafts and commercial credit.

Source: Hungary Around the Clock

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