CeMAP Mortgage Application Process 2

Question 1

At which stage of the mortgage process does the lender's valuation typically take place?

Accepted Answer

After the full application has been submitted

Answer

The lender arranges a valuation of the property after receiving the full mortgage application to confirm the property's worth as security.

Question 2

What is the role of a mortgage broker's compliance department in the application process?

Accepted Answer

To check that advice given meets regulatory standards before submission

Answer

The compliance department reviews case files to ensure advice meets FCA regulatory standards and the firm's own procedures.

Question 3

What does the term 'gazumping' mean in the UK property market?

Accepted Answer

A seller accepting a higher offer from another buyer after already accepting an offer

Answer

Gazumping occurs when a seller accepts a higher offer from a competing buyer after having already verbally accepted an earlier offer.

Question 4

What are local authority searches and why are they important in the mortgage process?

Accepted Answer

They reveal planning decisions, road schemes, and other matters that could affect the property

Answer

Local authority searches reveal important information about planning permissions, road proposals, conservation areas, and other factors that could affect the property's value or use.

Question 5

What happens if a mortgage offer expires before completion?

Accepted Answer

The borrower or their solicitor must request an extension or a new offer from the lender

Answer

If a mortgage offer expires, typically after 3-6 months, the borrower must request an extension which may involve reassessment.

CeMAP - Certificate in Mortgage Advice and Practice Practice Test

CeMAP - Certificate in Mortgage Advice and Practice Practice Test

CeMAP Mortgage Application Process 2