The Council of Mortgage Lenders (CML) will introduce changes to its handbook on 1 February 2016 further to the introduction of the EU Mortgage Credit Directive.

There will be additional wording in clause 10.2 to reflect the changes brought about by the EU Mortgage Credit Directive. The revised wording will be as follows:

‘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.’

The additional wording allows the conduct of the borrower’s agent (in this case, the conveyancer) to act as the acceptance of the mortgage offer on the borrowers behalf, by submitting a certificate of title (COT) to the lender. This will allow the lender, in the case where the lender does not require the borrower to formally accept the mortgage offer, to have evidence of the acceptance by virtue of the COT being submitted. It also indicates that the borrower has brought the reflection period to an end.