Key information that everyone will get

The information that should be included on a European Standardised Information Sheet (ESIS):

Product Description: A brief but clear description should state if the product is an interest-only home loan or a repayment home loan.

It should be clear if the consumer has to supply a certain amount of capital, usually expressed as a percentage of the house value.

If a third-party guarantee is needed, this should also be stated.

Rates: The type of interest rate - variable, fixed or a combination of both - should be indicated, as well as the duration of any fixed period.

Details of how the interest rate will vary, including review periods, lock-in periods and penalty clauses, should also be given. The ESIS should also include the APR.

Costs: The European Standardised Information Sheet divides costs into two groups - once-off costs and recurring charges. Where once-off costs are under the direct or indirect control of the lender, an estimate should be provided.

It should be made clear if any charges apply regardless of the outcome of the home-loan application, for example administrative costs, legal fees and property valuation.

Recurring costs might include home insurance and insurance against default on payments (mortgage protection).

Repayment: As well as stating the amount and frequency of payments, the lender should give an indication of the possibility and terms of early repayment, including whether charges apply.

Illustrative amortisation table: This is the main new feature of the documentation that will be sent to mortgage applicants with the letter of offer.

The table will give a breakdown of monthly payments for the first year and yearly figures over the total duration of the home loan.

It will contain figures on the amount of capital reimbursed, the amount of interest, the capital still outstanding, the amount of each instalment and the sum of capital and interest.