EU bank reforms threaten to raise mortgage costs Under a draft directive of reforms to make banking safer and rules more uniform, all EU loans must be declared to be in arrears after 90 days, the newspaper said. In Britain it is 180 days. Ray Boulger, of mortgage broker John Charcoal, said any effects from such a change would most likely be seen in higher mortgage costs, particularly for higher risker customers, rather than an increase in people being ejected from their homes. "If costs rise, lenders have two choices: to pass it on to customers or take a margin hit," he said. Regarding foreclosure, Mr Boulger said UK banks had to abide by FSA rules, which is long process and only occurs after a number of other remedies have been tried, such as reduced payments or payment holidays. On the whole he said the change was unlikely to have a "huge impact." The British Bankers' Association said this 90-day rule on arrears was one of their "top concerns," the FT reported.