Under MCD lenders are required to provide customers with a ‘binding offer’ which may be subject to lawful conditions surrounding its withdrawal or variation.
There is also a new requirement to provide customers with a ‘reflection period’ lasting a minimum of 7 days, which starts once the binding offer has been issued.
This will give your clients time to reflect and review their offer, make comparisons and assess the impact of taking out a mortgage. Borrowers can choose to waive this if they wish to complete sooner.
- Mortgage offers are binding from the date of issue
- 7 day reflection period will start from the date your client receives their mortgage offer.
- If the Certificate of Title (COT) is received within the 7 days it will be deemed the customer has chosen to waive the reflection period