Whenever a borrower undertakes a loan repayment plan with a lender, they will be entering a legally binding contract that can be used by either party in court if the terms within should ever be breached. At The Mortgage Calculator we always advise our audience to evaluate their options before coming to a decision – and this advice isn’t without reason.
Once you sign on the dotted line and your contract has been confirmed, you will be expected to uphold the terms contained within the payment plan, just as concretely as your bank will be required to keep up with their own responsibilities. There aren’t many legal hearings that will take the side of the borrower if they are deemed to be in breach of their payment conditions – and as you might imagine, this can be a pretty scary thing to face.
When is a contract made final?
The main thing that you need to keep in mind as an applicant, is that unless you put pen to paper and sign as necessary to confirm that you’ve read and accept all terms dictated within the mortgage’s contract – you won’t be legally obliged to do anything. This means that if you were to compare loans, get to know a little bit more about interest rates, or even proceed with your application; the only time that you will be obliged to follow through with your commitment is if you sign the contract that’s been prepared.
Theoretically, you could walk away from an arrangement at any point – without your decision taking a negative toll on your credit score, or affecting your future application potential with the same lender. All forms of correspondence between banks, borrowers and mortgage brokers are considered theoretical until an agreement has been made, and a finalised contract has been established.
Unfortunately, once that paperwork has been signed – you will have committed yourself to the terms as featured within the agreement
This is why it’s so hugely important to ensure that you undertake all of the right research before reaching a decision on the type of mortgage that you’d like to sign up to. We actively encourage our audience to weigh up their options, so as to avoid agreeing to terms that may end up being detrimental to your repayments in the future. Professional help like that offered by brokers and financial advisors can be a great advantage – and as long as you consider everything before signing on the dotted line, you’ll be able to rest assured that you’ve made the correct decision.