MIp37-38_1209:MI 12 Jan 24/11/2009 16:49 Page 3
Training
37
CeMAP
revision
So you think you know your stuff – but do you? Test yourself with
specimen CeMAP exam revision questions courtesy of ifs School of
Finance – don't worry we tell you the answers as well! For more help
with revision, lessons and to get your own personal CPD certificate don't
forget to visit the CPD section on our website mortgageintroducer.com
QUESTIONS A - Immediately. 6. What is the position when a joint borrower
B - 4 months. wishes to be released from his commitment
1.In which of the following circumstances
C - 6 months. due to an impending divorce? The lender:
would open bridging finance be appropriate?
D - 13 months. A - cannot refuse under any circumstances.
For:
B - is likely to refuse if it believes that the
A - John, who has exchanged contracts on the
4. GNayan and Chandra are considering moving remaining borrower will be unable to
sale of part of the land adjoining his
now that their first baby is due. Of what meet the mortgage repayments.
property.
should they be aware? C -should recommend the remaining
B - Louise, who wishes to purchase a property
A - The lender's checks will be less stringent borrower move to a cheaper property.
before a buyer has been found for her
now that they are on the property ladder. D - will not be able to act until the decree
existing property.
B - They cannot use existing life policies for absolute is obtained
C - Mark, who has exchanged contracts on the
the new mortgage.
sale of his property but wishes to complete
C - They will be able to reclaim part of the 7.Bob and Carol are having to move to a new
his purchase before his sale.
higher lending charge they paid when they area as a result of Bob's promotion. They are
D - Mary, who wishes to purchase a plot of
bought their existing property. currently two years into a five year fixed rate
land on which she wants to build her own
D - They will need to set aside money to cover mortgage with early repayment charges.
home.
costs. Which feature might enable them to move
without paying a penalty?
2. What specific feature of a mortgage can avoid
5.Harry and Rebecca are considering taking The:
the need for 'tacking'?
advantage of their existing lender's latest fixed A -consolidation option.
A- Daily calculation of interest.
rate deal by switching from their variable rate B -overhang option.
B- Drawdown facility.
mortgage. They will not raise any additional C -portability option.
C- Early repayment charge.
capital and the mortgage would represent 82% D -remortgage option.
D- Fixed rate of interest.
LTV compared to the original 94%. Which of
the following would be true of their proposed 8.David and Frances are considering moving to
3.A borrower is considering a remortgage from
action? a nicer house which is in the same road as
his existing 6.5% interest only loan to a three
A - It is likely to be less costly to arrange than their existing home. Which of the following is
year fixed rate at 5%. He will not increase the
a remortgage. likely to be the most important consideration
£120,000 borrowing and has calculated that it
B - The switch is likely to be cost free. for them?
will cost £750 in charges, fees and legal costs,
C - They may have to pay another higher A - Schools for the children.
which he will pay from savings. At what point
lending charge. B - The cost of the move compared to the
will he start to benefit financially from the
D - They would have to allow for benefit gained.
new arrangement?
conveyancing costs. C - The facilities available in the new locality.
D - The reputation of the Local Authority.
.
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