What Is A Secured Loan Offer?

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.

• The CMO is made first, then the BMO
• There is a 7-day reflection period following the BMO
• You are not obliged to accept the BMO and the lender cannot contact you during those 7 days.
• You can choose to accept the BMO before the 7 days are up

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.