Hadjipantela urges stronger protection for vulnerable borrowers’ primary homes

Nicosia, Cyprus. Cypriot MEP Michalis Hadjipantela has called on the Association of Cyprus Banks to strengthen protection for the primary residences of vulnerable borrowers who have repaid a substantial part of their mortgages.

The request, also addressed to the Central Bank of Cyprus and the European Central Bank, follows provisions supported by the European Parliament earlier this year.

European Parliament provisions

According to Politis, Hadjipantela asked Cyprus’ banks to take the provisions into account when dealing with borrowers who have consistently met their repayment obligations.

The issue concerns the European Parliament’s Banking Union report for 2025, for which Hadjipantela served as shadow rapporteur for the European People’s Party.

The text approved by the European Parliament urges member states and relevant authorities to ensure adequate protection for primary residences, particularly those of vulnerable households.

It also calls for consideration of both the size of the property and the amount of the original loan already repaid, including cases where borrowers have paid a substantial share, such as 50 per cent.

Foreclosure concerns

Hadjipantela said the provision reflected an expectation that households which have acted in good faith and consistently met their obligations over a long period should receive greater protection when their main home is at risk.

Foreclosures and the treatment of vulnerable borrowers have remained politically sensitive issues in Cyprus.

Central Bank of Cyprus figures submitted to parliament showed that more than 900 homes were on the auction track in the third quarter of 2025, with most valued below €350,000.

During the same quarter, 98 primary residences were sold, including 93 valued at less than €350,000, representing a sharp increase from the corresponding period a year earlier.