Fancy a mortgage rate of 2pc?

A mortgage rate of 2pc could be yours, if the EU’s internal market commissioner Charlie McCreevy approves a new report.

Mr McCreevy said more cross-border activity and competition could increase choice and reduce costs for consumers. He has issued a consultation document looking into the need for EU standards for information about mortgages, rules on calculating interest and switching fees.

The green paper also asks whether lenders should have access to information such as land registers, credit histories and property valuations in other countries.

The commission is examining a range of initiatives which could facilitate cross-border mortgage credit activity, including a European Mortgage deed, or Euromortgage, a mechanism for constructing the mortgage deed which is said to be able to facilitate cross-border mortgage credit activity.

The commission is inviting comments from interested parties by November 30.

Ray Boulger, technical director at mortgage adviser John Charcol told the BBC News website that “Britons benefit from some of the cheapest mortgage rates in Europe, despite the higher base lending rate.”

Currently the base rate of interest in the eurozone is 2% whilst in the UK the rate is 4.75%.