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  • FIRST POST
    • Glitzkiss
    • By Glitzkiss 26th Sep 17, 10:02 PM
    • 5,184Posts
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    Glitzkiss
    Do mortgages have a cooling off period?
    • #1
    • 26th Sep 17, 10:02 PM
    Do mortgages have a cooling off period? 26th Sep 17 at 10:02 PM
    I did a search but couldn't find an answer to my question.

    Background. I'm remortgaging at 60% LTV and thought I'd found the best deal out there with my current provider. I've signed and returned what they call the Product Special Conditions form however I've not paid the fee yet and was planning to pay it over the phone this week. I've since discovered my search wasn't good enough and there's a similar product out there with one difference - the fee is significantly smaller. I don't want to waste the new lender's time applying if I'm going to be held to the signed form.

    So can my current provider insist I stick to what i signed and add the substantial fee to my current mortgage? In which case I may as well accept my error and stay with them. Or are mortgages like other financial products and offer a 14 day cooling off period?

    Thanks for any advice
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Page 1
    • amnblog
    • By amnblog 26th Sep 17, 11:41 PM
    • 10,071 Posts
    • 3,926 Thanks
    amnblog
    • #2
    • 26th Sep 17, 11:41 PM
    • #2
    • 26th Sep 17, 11:41 PM
    Yes, your offer should have a paragraph like this.

    Reflection Period

    We are required to give you time to consider this offer. We have given you 10 days after 1st September 2017 to consider and reflect on the terms and conditions of this loan agreement. You can take longer, but if you wish to proceed before the 10 days expire, you can do so by returning your signed offer document to us and, where applicable, by telling the solicitor dealing with this mortgage. If the solicitor requests release of the funds for this offer before the 10 days expire, this will be considered as confirmation that you have waived your reflection period for this offer.

    This reflection or cooling off period was brought in a couple of years ago are part of a set of EU standardisation rules. It actually has little practical use here in the U.K. as until your solicitor has drawn the funds you are not committed. You may also notice that the paragraph does not make much sense as a result.

    You may of course lose fees you have paid in obtaining the mortgage offer. Speak to the Lender.
    Last edited by amnblog; 26-09-2017 at 11:43 PM.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Glitzkiss
    • By Glitzkiss 27th Sep 17, 7:00 AM
    • 5,184 Posts
    • 13,471 Thanks
    Glitzkiss
    • #3
    • 27th Sep 17, 7:00 AM
    • #3
    • 27th Sep 17, 7:00 AM
    Thanks for the reply. There is no paragraph mentioning a reflection period. What it does have in the keyfacts is a paragraph stating the following

    1. About this product transfer illustration and offer document

    You are not bound by the terms of this product transfer document until you have signed the product special conditions and the changes made to the mortgage.

    We are required by the Financial Conduct Authority - a financial services regulator to provide you with this offer document.
    The rest of the keyfacts provides all the usual interest information, overpayments, overall cost, interest rates warning, fees etc. but no reflection period.

    So, product special conditions form has been signed and returned but fees have not been paid so technically the changes should not yet be made. Am I bound to this as I've stupidly signed or is there still a get out clause?
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    • amnblog
    • By amnblog 27th Sep 17, 7:33 AM
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    amnblog
    • #4
    • 27th Sep 17, 7:33 AM
    • #4
    • 27th Sep 17, 7:33 AM
    Sounds like you are not bound until the change has been made, which is what I would expect.

    Speak to your Lender today.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Glitzkiss
    • By Glitzkiss 27th Sep 17, 8:07 PM
    • 5,184 Posts
    • 13,471 Thanks
    Glitzkiss
    • #5
    • 27th Sep 17, 8:07 PM
    • #5
    • 27th Sep 17, 8:07 PM
    Thank you again, that is very hopeful. I think I will make sure I have a MiP from the other lender first and then contact my current lender to see what the situation is. It would be very un-MSE if I ended up with no offer and on SVR
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    • Glitzkiss
    • By Glitzkiss 3rd Oct 17, 4:00 PM
    • 5,184 Posts
    • 13,471 Thanks
    Glitzkiss
    • #6
    • 3rd Oct 17, 4:00 PM
    • #6
    • 3rd Oct 17, 4:00 PM
    A quick update from me. My current lender had no problem at all with me backing out despite signing the form and the arrangements with the new lender are going ahead. So my savings stay intact for longer

    Thank you again amnblog for your advice
    Skip to the end
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