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MIp40-41_0110:MI 12 Jan 15/12/2009 14:29 Page 2
40
Training
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 D - one party wishes to be removed from a B - Drawdown facility.
mortgage. C - Early repayment charge.
1.Which of the following is an advantage of a
D - Fixed rate of interest.
home reversion scheme when compared to a
4. A second mortgagee:
lifetime mortgage?
A - cannot register a charge without the 7. A borrower is considering a remortgage from
A - Cash or income produced will be at a
consent of the first mortgagee. his existing 6.5% interest only loan to a three
discount to the real value of the property.
B - is not entitled to a share of the proceeds of year fixed rate at 5%. He will not increase the
B - No interest is payable or charged.
sale if the first mortgagee sells in £120,000 borrowing and has calculated that it
C - The borrower's estate will always benefit
possession. will cost £750 in charges, fees and legal costs,
from increases in the property value.
C - must charge the same rate of interest as which he will pay from savings. At what point
D - The plan holder can stay in the property
that charged by the first mortgagee. will he start to benefit financially from the
for life.
D - normally charges a higher rate of interest new arrangement?
than the first mortgagee. The:
2. Which of the following could be seen as a
A - Immediately.
disadvantage of a SHIP compliant 'roll-up'
5.In which of the following circumstances B - 4 months.
lifetime mortgage?
would open bridging finance be appropriate? C - 6 months.
A- Ownership transfers to the provider.
For: D - 13 months.
B- Taking out such a plan could lead to
A - John, who has exchanged contracts on the
reduced State benefits.
sale of part of the land adjoining his 8.Nayan and Chandra are considering moving
C- The borrower could build up a negative
property. now that their first baby is due. Of what
equity situation.
B - Louise, who wishes to purchase a property should they be aware?
D- The owner loses all rights to any increase
before a buyer has been found for her A - The lender's checks will be less stringent
in the property value.
existing property. now that they are on the property ladder.
C - Mark, who has exchanged contracts on the B - They cannot use existing life policies for
3.A deed of postponement might be necessary
sale of his property but wishes to complete the new mortgage.
if:
his purchase before his sale. C - They will be able to reclaim part of the
A - a borrower wishes to extend the term of
D - Mary, who wishes to purchase a plot of higher lending charge they paid when they
the mortgage.
land on which she wants to build her own bought their existing property.
B - a mortgage contract does not contain an
home. D - They will need to set aside money to cover
obligation for the lender to make further
costs.
advances.
6. What specific feature of a mortgage can avoid
C - a property owner wishes to arrange a
the need for 'tacking'? 9.Harry and Rebecca are considering taking
second charge.
A - Daily calculation of interest. advantage of their existing lender's latest
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