Applying Mortgage Advice Knowledge Flashcards
6 cards from real CEMAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Applying Mortgage Advice Knowledge flashcards as text
Under FCA rules, what is the maximum period for a mortgage illustration to remain valid after issue?
Answer: 28 days
A mortgage illustration (KFI/ESIS) remains valid for a minimum of 28 days, giving the customer adequate time to consider the offer.
A client has a joint mortgage but is going through a divorce. What is the adviser's primary obligation?
Answer: Ensure both parties receive independent legal advice
The adviser must ensure both joint borrowers are treated fairly and recommend independent legal advice for both parties.
What does the abbreviation TCF stand for in the context of UK mortgage regulation?
Answer: Treating Customers Fairly
TCF stands for Treating Customers Fairly, one of the FCA's core principles for regulated firms.
A borrower wants to port their existing mortgage to a new property. Which condition must typically be met?
Answer: The borrower must pass a new affordability assessment
Even when porting, lenders require a fresh affordability assessment under current criteria to ensure the borrower can still meet repayments.
What is the purpose of a Decision in Principle (DIP) in the mortgage process?
Answer: It provides an indication of how much the lender may be willing to lend
A DIP gives an indication of lending willingness based on initial information, but is not a binding commitment.
Under MCOB rules, when must an adviser provide a suitability report?
Answer: Before the mortgage application is submitted
MCOB requires that a suitability report explaining why the recommended mortgage is appropriate must be provided before the application is submitted.