FinanceTeam

What is the Consideration period?

When you make an application for a loan you may hear this term mentioned.

When applying for a secured loan or mortgage of an amount below £25,000 legislation requires you to be given the loan agreement and any other relevant documents, so that you can study the documents carefully. You must be given time - 7 days - to consider the loan properly.

During this period, neither the lender or broker can initiate contact with you, however they can respond to any questions raised by you. This “consideration period” gives you time to take independent advice if you wish. You will not be given a “signable” copy of the agreement until the consideration period is over. Once you have received the signable documents, you will be allowed a further seven days to consider the loan before either the lender or broker can contact again.

The consideration period is only required for loans of £25,000 or less.