2&3

Question 1

MPPI

Answer 1

Covers Mortgage
Decreasing Term Assurance
Level Premiums
28 Day Pay Referral
Up to 2 years payments
Accident/Sickness
18-65
No medical
Tax free
Annually renewable

Question 2

PPI

Answer 2

Loan Protection
mortgage/personal/overdraft
tax free
annually renewable
Pre-existing medical conditions are not usually covered.
Claims resulting from self-inflicted injury (other than accidents), alcohol
or substance abuse, pregnancy or involvement in criminal acts are not
generally covered
Payment will commence after a deferred period (typically between 30 and 60
days). Cover can be usually arranged for a benefit period of up to 12 months
but some providers may provide benefit for up to 24 months
Cover is normally provided at a fixed cost per £100 of benefit.

Question 3

IPI

Answer 3

Monthly payments
Deffered for a set period - 4,13,26 or 5525 weeks
sickness and illnesss
good for young couples
50-80% pay
low cost options available
5 -40

Question 4

CIC

Answer 4

Lump sum
one claim
mortgage/debt repayment
long term care
28 day survival period
cancer/stroke/heart disease
level cover - decreasing or increasing

Question 5

Auction Purchase

Answer 5

10 % deposit
mortgage survey and legal all in place
10%% plus shortfall top pay if you pull out
exchange on the day, 28 day completion

Question 6

Modern method of auction

Answer 6

56 days top complete
5% non refundable deposit

Question 7

Sols full liscence

Answer 7

5 years

Question 8

Execution only advice record keeping

Answer 8

3 years

Question 9

SPV/LLP docs

Answer 9

PERSONAL guarantees

Question 10

Business partnership docs

Answer 10

Written partnership agreement

Question 11

Calculating monthly interest

Answer 11

loan amount/100xinterest rate
an int / 12

Question 12

ISA mortgage

Answer 12

interest due paid during term
separate life cover
cashed at any time w/o penalty
not guaranteed to pay mortgage
most common method
stocks and shares
Flexible

Question 13

Recommendation record keeping

Answer 13

3 years

Question 14

ESIS KFI record keeping

Answer 14

1 year

Question 15

Base rate tracker options

Answer 15

bank - 8 reviews a year in line with mpc
libor - every 3 months

Question 16

Islamic home finance stamp duty

Answer 16

paid one when purchased by lender

Question 17

With Profits

Answer 17

Pay mortgage on death
Sum assured paid at maturity
maturity sum not agreed - set date
not flexible

Question 18

Full with profits

Answer 18

expensive due to guarantee
pays mortgage or maturity

Question 19

Low cost profits

Answer 19

50-60% of mortgage amount
Death benefit is guaranteed
bonuses can plug gaps
infllexible
Final value not guaranteed to pay
off mortgage
Combines investment and life
cover

Question 20

Unit-Linked Endowment

Answer 20

Guaranteed death benefit
set premium to meet mortgage target
could be shortfall
flexible
premiums can be cashed early
Riskier
unit‑linked policies are flexible, and it may be possible to increase or
decrease the premiums or sum assured, or to extend the term, subject to the
insurer’s rules and qualifying rules.
Policy reviews: On a typical 25‑year policy, reviews would take place after 10, 15
and 20 years, becoming annual after that.
Early surrender: Most unit‑linked endowments impose some sort of charge for cashing in the
plan before the end of the term, usually within the first ten years of the plan.
The most common method is to deduct a certain percentage of the units on
encashment, with the percentage reducing each year during the penalty period.
Wide range of funds to choose from

Question 21

Unitised with profits

Answer 21

Buys in with profits fund
security of with profits but better growth than a unit linked
variable and fixed units
Once
invested, the price is the minimum that is guaranteed to be paid at maturity.

Question 22

ASU

Answer 22

expensive compared to ipi because not underwritten on a personal basis
renewable
can increase premiums

Question 23

Self assessment forms

Answer 23

HMRC tax calcs - 2 to 3 years
accountants cert
full business accounts

Question 24

Business Turnover

Answer 24

turnover - total
- materials = gross
- expenses = net

Question 25

Basic expend

Answer 25

basic - bills - can be used as average
committed - credit - always taken into consideration
qol

Question 26

Vulnerable customers

Answer 26

physical/mental
weak numeracy/literary skills
job loss
bereavement
relationship breakdown
personal

Question 27

POA

Answer 27

Office of public guardian

Question 28

ISA Mortgage

Answer 28

Investment is made into an ISA on a regular basis, usually monthly but
sometimes annually
separate life cover is needed
ISAs can be cashed in at any time without penalty
stocks and shares
ISAs are as risky as the
underlying investments
20k max py

Question 29

Pension Mortgage

Answer 29

Tax relief on contributions
Flexible income options
No guarantee of final fund value
Taking funds to repay the
mortgage will result in a lower
pension being received

Question 30

First home initiative

Answer 30

It enables first‑time buyers in
England to purchase a new‑build house with a discount between 30 and 50 per
cent, funded by the developer.
Eligible buyers are first‑time buyers aged 18 plus with a combined income
not exceeding £80,000
The buyer(s) must have a mortgage or home purchase plan to fund at least
50 per cent of the discounted purchase price

Question 31

HTB ISA

Answer 31

30.11.2019 closing
max 1200 first month and 200 after
25% saved
3k max bonus
must buy by 1.12.2030
250/450k

Question 33

Llifetime ISA

Answer 33

18 - 39
4k max py
retirement/house buying