An amendment will be made to clause 10 of the Council of Mortgage Lenders’ (CML) Handbook on 1 February 2016.
The amendment has been made to accommodate the requirement under EU law for prospective borrowers to be given a reflection period of at least seven days before they accept a mortgage offer.
The amendment adds the wording in bold below into clause 10.2:
‘10.2 We shall treat the submission by you of the certificate of title as confirmation that the borrower has chosen to proceed with our mortgage offer and as a request for us to release the mortgage advance to you. Check part 2 to see if the mortgage advance will be paid electronically or by cheque and the minimum number of days notice we require.’
Lenders will explain the concept of the reflection period to prospective borrowers, for example in the mortgage offer and mortgage terms and conditions.
It is expected that lenders will either give a 10-day reflection period or align the reflection period with the existing offer expiry date (which can be up to six months).