• The President of UOKiK intends to initiate legislative work on an act that would introduce uniform templates for mortgage loan agreements with a fixed interest rate for a defined period into Polish law.
• These templates would be binding for all lenders, with no possibility for modification.
• The proposed solution is designed to protect consumer interests while also reducing legal risk for banks.

Polish consumers face numerous difficulties when trying to purchase an apartment. The most significant and widely discussed obstacle is the high cost of mortgage loans, which are considered the highest in the European Union. Additional challenges include complicated agreement templates, often filled with unclear clauses and stipulations – for example, provisions that tie the amount of margin to the purchase of additional services.

A solution to protect consumers from unfair terms in loan agreements is the introduction – by law – of uniform mortgage loan agreement templates with a fixed interest rate for a defined period.

Proposal Based on UOKiK’s Experience

The President of UOKiK, as the authority responsible for consumer protection, has extensive experience in evaluating the terms of loan agreements. He receives and analyses consumer complaints, conducts proceedings regarding unfair terms in agreement templates, and issues decisions as well as important opinions in court cases. For over a year, UOKiK experts have been working on templates applicable to the purchase of apartments and houses on both the primary and secondary markets.

– Such templates seem essential today to ensure that Polish women and men have open access to more affordable financing for purchasing an apartment or building a house – emphasises Tomasz Chróstny, President of UOKiK.

The preparation of mortgage loan agreement templates with a fixed interest rate for a defined period by UOKiK ensures a standard that guarantees consumer safety and legal stability for the financial sector.

– When designing the templates, we involved representatives of both the Polish Bank Association and the Polish Financial Supervision Authority. They all support the introduction of a safe, fair, and indisputable mortgage loan agreement template into Polish law – based on a fixed interest rate for a defined period. We have prepared legislative proposals in this area and would like to begin legislative work and public consultations as soon as possible. For this reason, I have requested authorisation from the Prime Minister and the inclusion of this initiative in the Council of Ministers’ legislative agenda. I hope that these changes, which are essential for borrowers, will receive the government’s support – adds the President of UOKiK.

Safe Agreements, Clear Rules

The introduction of the solution proposed by the President of UOKiK would, in practice, mean that whenever a lender concludes a mortgage agreement with a consumer featuring a fixed interest rate for a defined period, it would be mandatory to use the standard template specified in the Mortgage Act. Lenders would not be permitted to modify this template, thereby protecting consumers from the inclusion of unfair contractual clauses.

Cheaper Loans

Enhancing consumer protection is not the only advantage of introducing a statutory agreement template. The change would also increase transparency in the rules for granting and servicing housing loans and make it easier for consumers to compare offers from different banks.

Under a uniform statutory agreement, banks would no longer be permitted to bundle additional services with the mortgage loan (except for property insurance), which is a common issue in the current market. As a result, monthly instalments would become more predictable for consumers, and loan agreements would be free from the significant costs of additional services.

Moreover, the agreement templates would standardise the rules for calculating and define the maximum compensation a bank can charge when a consumer exercises the right to early repayment.

Peace of Mind and Security for Consumers

Mortgage loan agreements with a fixed interest rate for a defined period, concluded using a uniform statutory template, as proposed by the President of UOKiK, would provide a fixed rate for a minimum of five years. This solution would offer consumers greater predictability of loan-related financial burdens during the critical period of repayment.

– Currently available loan products on the Polish market typically offer a fixed interest rate for five years. One reason for this is the fact that the Polish market lacks adequate security instruments for banks. However, we assume that as the market for fixed-rate loans develops and interest rates fall, the offer will also expand to include longer fixed-rate periods. In the perspective of a dozen or so years, it may even be possible to ensure a fixed interest rate for the entire loan period – says Tomasz Chróstny, President of UOKiK.

Lower Risk for Banks

One of the most pressing problems facing the financial sector – directly affecting credit costs and leading to an increasingly limited range of products – is legal risk. According to data from the Polish Bank Association, the average annual margin on a mortgage loan in 2024 was 1.7%, of which nearly half (0.81 percentage points) was attributed to legal risk. In practical terms, this risk cost the sector approximately PLN 537.9 million in 2024.

The introduction of a safe, uniform mortgage loan agreement template with a fixed interest rate for a defined period in an act would significantly reduce this risk. According to the case law of the Court of Justice of the European Union (CJEU), when the legislator ensures that statutory terms are free of unfair provisions and properly balance the rights of both parties, such terms cannot be challenged in court.

– Consumers need safe agreements – clear rules that will help them make informed decisions when taking on long-term financial commitments. These are often life-changing choices. At the same time, the financial sector needs a solution that guarantees stability and fair market conditions. The goal is to ensure that consumers can be confident their agreement does not contain unfair or harmful provisions, while banks can rely on the fact that their agreements will not be challenged in court. In this way, we can reduce legal risk, which currently represents the largest component of bank margins. Adopting the mortgage loan agreement template in the form of an act will allow both of these objectives to be met. We hope to promptly receive inclusion in the legislative agenda and authorisation to proceed with the work, so that the draft can be submitted to the Sejm and Senate at the beginning of next year and adopted no later than mid-2026 – emphasises Tomasz Chróstny, President of UOKiK.

Mortgage Loan Agreement According to UOKiK

• Transparent rules for granting and servicing loans – no loopholes, asterisk, or hidden costs
• Easier comparison of mortgage offers across banks
• Greater protection and lower costs for borrowers
• Reduced legal risk and lower risk-related costs for lenders
• Fixed interest rate for a minimum of 5 years