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22 July 2005
The European Union is looking into a common mortgage deed, called a euromortgage, to get overcome legal barriers to cross-border home loans.

UK consumers could soon benefit from cheaper mortgage rates available abroad.

But expert opinions are divided on whether or not a euromortgage would work.

Charlie McCreevy, the EU single market commissioner, believes it will benefit consumers.

"More cross-border activity and competition in the EU mortgage market could increase choice, reduce costs and leave more money in people's pockets."

But UK mortgage expert Ray Boulger, technical director at mortgage firm John Charcol disagreed saying: "The UK mortgage market is far and away the most competitive in Europe. As a result Britons benefit from some of the cheapest mortgage rates in Europe, despite the higher base lending rate."

The European Central Bank interest rate is two per cent compared with the Bank of England's 4.75 per cent.

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