• Article by
  • Debbie Porter
  • 14 April 2016

New rules under the Mortgage Credit Directive 2016

New rules under the Mortgage Credit Directive (MCD) apply with effect from 21st March 2016. The rules introduce the requirement to give customers a minimum 7 day period of reflection once a binding mortgage offer is issued. This reflection period allows each customer to decide whether they wish to accept the terms of their mortgage offer.

A customer can accept their mortgage offer without waiting for the prescribed reflection period to expire. By requesting mortgage funds on behalf of their client, the solicitor will be indicating their client’s acceptance to proceed. It is therefore important that a solicitor has obtained authority from their client before submitting their request for mortgage funds to be released along with confirmation that their client is agreeable to and has accepted the terms of the mortgage offer.

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