CeMAP The Mortgage Application Process 3

Question 1

A self-employed applicant applying for a mortgage would typically need to provide how many years of accounts or SA302s?

Accepted Answer

Two years

Answer

Most lenders require at least two years of accounts or HMRC SA302 tax calculation forms to assess a self-employed applicant's income.

Question 2

What is 'portability' in the context of a mortgage product?

Accepted Answer

The ability to move the existing mortgage to a new property

Answer

Portability allows the borrower to transfer their existing mortgage deal to a new property, avoiding early repayment charges when moving home.

Question 3

Which regulatory body directly supervises mortgage lenders and advisers in the UK?

Accepted Answer

The Financial Conduct Authority (FCA)

Answer

The FCA is responsible for the conduct regulation of mortgage lenders and advisers, including the rules set out in MCOB.

Question 4

Under the Mortgage Credit Directive (MCD), what reflection period must lenders give borrowers after issuing a binding mortgage offer?

Accepted Answer

7 days

Answer

The MCD requires lenders to give borrowers a minimum 7-day reflection period after issuing a binding mortgage offer before the borrower is required to accept.

Question 5

What is the purpose of the Mortgage Credit Directive's 'European Standardised Information Sheet' (ESIS)?

Accepted Answer

To provide a standardised comparison document enabling borrowers to compare mortgage products across Europe

Answer

The ESIS is a standardised document that presents key mortgage information in a prescribed format to allow borrowers to compare products across different lenders and EU member states.

CeMAP - Certificate in Mortgage Advice and Practice Practice Test

CeMAP - Certificate in Mortgage Advice and Practice Practice Test

CeMAP The Mortgage Application Process 3