If I change my mind can I cancel a loan?

If you want to cancel a loan, there are many variables, depending on where you signed. Look carefully at your loan agreement- if the agreement does not say that you  have a right to cancel then you cannot do so. To give further example, with an unsecured  loan, you cannot cancel if you signed the contract on the traders premises.

If you are applying for a secured loan or mortgage of up to £25,000 the law requires you to be given copies of the loan agreement (and all relevant documents) in order that you can read the documents carefully and consider the loan properly.

You will always have 7 clear days to review the documents.

During this time neither the lender or the broker is allowed to contact you (You can however ask them questions).

This period is known as a “consideration period”. During this time you could take further independent advice to keep your mind at rest. You will have a ”signable” copy of the agreement until the end of the period of consideration. Once you have the signable contract, you have up to  7 more days, when the lender and broker will not contact you.

ONLY IF YOU SIGN THE AGREEMENT ARE THE LOAN CONDITIONS ENFORCEABLE.