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From Adviser Guide: Short-term finance

Q: Once a bridging loan is agreed can it be cancelled?

Following acceptance of an offer, but prior to draw down of funds, borrowers are under no obligation to take out their loan.

By Emma Ann Hughes | Published Jun 28, 2012 | comments

Following acceptance of an offer, but prior to draw down of funds, borrowers are under no obligation to take out their loan.

Paul Aitken, chief executive of Borro, said with a Borro personal asset loan, the client has the right to withdraw from the loan agreement within 14 days without having to give any reason.

The period of withdrawal begins from the latest of the day on which the agreement is made and the day on which the borrower receives a copy of the agreement or is notified of its execution where they have an identical unexecuted copy in accordance with section 61A (2) and (3) of the Consumer Credit Act 1974 and ends 14 days after that date.

If the client wishes to exercise their right of withdrawal, Mr Aitken said they must notify the lender of their intention to do so, either in writing or orally by contacting the lender.

If the client does withdraw, Mr Aitken said they are required to pay, without delay and no later than 30 calendar days after giving notice of withdrawal the interest accrued from the date the credit was provided to the date of repaying it.

The client also has the right to repay what they owe under an agreement early, either in full or in part.

To do so, Mr Aitken said they must give notice to the lender, orally or in writing, and make the payment within 28 days of the notice or on or before any later date specified in the notice.

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