When the lender makes you an offer, they’ll have to give you an explanation of the loan’s essential features.
They’ll also give you a personalised document. This might be referred to as a European Standardised Information Sheet or a Key Facts document. This document:
- provides a reflection or ‘cooling off’ period
- explains the terms of the offer
- recaps some of the details of your loan application
- summarises features – including any fees, the APRC and changes to your monthly repayments if the interest rates rise beyond a particular point.
You have the right to take seven days from the time the offer is made to think about whether you want to accept.
Some lenders might give you more than seven days.
During this time, the lender’s offer is binding, and they will stand by the terms you’ve been offered.
There are a few exceptions though – for example, if the information you gave in the application is found to be false, the terms could be rendered invalid.
It’s a good idea to take advantage of this time to not only think about the offer you’ve received but to also compare it with other loans.
If you’re sure you want to go ahead with it, you don’t have to wait out the full reflection period to tell the lender you’ll accept the mortgage.