EU Mortgage Directive revision tightens non-resident LTV caps
European Banking Authority has proposed revisions to the Mortgage Credit Directive limiting non-resident LTV ratios to 60% (currently 65-75% depending on member state). Draft proposes Q3 2027 implementation. Affects all 27 EU member states.
Avena analysis.
Non-resident buyers using leverage will require larger down payments — typical international buyer using 70% LTV would need to inject an additional 10% of property value or step down to smaller property. Historical comparables (Spain LTV tightening 2013, Cyprus LTV adjustment 2018) produced 4-7% pricing pressure on coastal markets within 12-18 months. Coastal/holiday-home markets disproportionately affected as they have higher non-resident LTV usage than urban markets. Cash buyers and equity-rich downsizers from Northern Europe partially offset the impact.
Affected markets.
Detected 21 May 2026 · Tracking until 01 Sept 2027· CC BY 4.0