A “secured loan offer” is one of two types of offer a lender can make – a Conditional Mortagage Offer (CMO), or a Binding Mortgage Offer (BMO). The CMO is made first, then the BMO.
Once a lender has assessed your secured loan application, it may offer a CMO, which provides an illustrative quote. It is subject to a number of conditions being met before the application can proceed further.
Once the lender has received and is satisfied with all the requested documentation and proof, the loan will be approved. The lender then issues the BMO.
You can then immediately go ahead with the loan if you are happy with the BMO. However, you are entitled to a 7-day reflection period to consider the terms of the loan. The lender cannot contact you during that period. You do not have to accept the BMO.
Accepting the BMO is not the final step in the application process.
The BMO will be sent along with the Terms and Conditions and the Legal Charge, Standard Security Mortgage Deed. By signing and returning the Legal Charge, Standard Security or Mortgage Deed, you are accepting the terms of the loan and have indicated you wish to proceed on that basis.
Representative 22.93% APRC variable.
For a typical loan of £26,600 over 180 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £484.00. This includes a Product Fee of £2,660.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £87,030.00. Annual Interest Rates range between 11.7% to 46.5% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.