The Mortgage Credit Directive (MCD) was implemented in the UK on 21 March and the certificate of title was updated to reflect the changes.

The MCD gives potential borrowers a reflection period of at least seven days once they have received a binding mortgage offer. The reflection period is intended to allow the consumer sufficient time to compare offers, assess their implications and make an informed decision.

This directive is more suited to the processes in EU countries than those used in England and Wales. Some lenders do not have an acceptance of an offer procedure so it is difficult to determine that there is a binding offer until the certificate of title is delivered.

The certificate of title has therefore been amended by the addition of paragraph 1(b). Most lenders are accepting the submission of the certificate of title as confirmation that the borrower has had a period of reflection or has waived the right to the reflection period. Solicitors will need to look at the details set out in individual mortgage offers and instructions.