Mock Flashcards
If an endowment is entirely assigned to a mortgage provider, but there is a second charge, who is the proceeds paid out to?
The proceeds are paid out to the lender
When a customer has had their house repossessed, charges should not be…
When a customer has had their house repossessed, charges should not be excessive
When a mortgage lender offers a foreign currency loan, what must they provide?
The lender must provide a limit to the currency risk faced.
What is the most common type of property purchase is Scotland?
The most common type of property purchase in Scotland is private bargain
Who is responsible for the identification of the legal title of the property on behalf of the lender
The purchasers solicitor is responsible for the identification of the legal title of the property
What is the final sale price when a property has been sold at auction?
At an auction, the final sale price is the price when the gavel falls.
Who usually commissions a basic valuation?
The lender usually commissions a basic valuation
What is the charge called on a guarantors property
A charge on a guarantors property is called a ‘surety’
What happens when a lender has been said to secruritise their assets?
When a lender securities their mortgage assets it means that they have raised funds on the secondary market by issuing mortgage backed securities.
What type of tax are solicitors fees subject to?
Solicitors fees are subject to VAT
Who does a higher lending charge protect?
A higher lending charge only protects the lender
Which source book does the sales of MPPI have to abide by?
The sales of MPPI must follow the rules of the Insurance: Conduct of Business Source book (ICOBS)
What must you do if you are remortgaging whilst you have a second charge on the property?
If you are remortgaging whilst you have a second charge on the property, you must ask the finance company to postpone the second charge.
What is the maximum amount of savings someone can have before they lose their eligibility for Support for Mortgage Interest (SMI)
The maximum amount of savings you can have before losing eligibility for SMI is £16,000
When is the 1st payment for SMI paid?
The 1st payment for SMI is paid after 39 weeks.
What type of charge usually accompanies s discounted rate mortgage?
An early repayment charge usually accompanies a discounted rate mortgage.
Who provided SMI?
SMI is provided by DWP
What is SMI?
SMI is a secured loan from the DWP to help with interest on a mortgage or home improvement loan
When is the SMI loan repaid?
The SMI loan is repaid with interest on sale of the property or transfer of ownership
Who is SMI paid to?
The SMI is paid directly to the mortgage provider.
What is the minimum period that an authorised firm must retain non-real time credit promotions?
These must be kept for at least 1 year from the last communication date
Secured loans against a property should be managed against which sourcebook?
Secured loans should be managed against MCOBS
When is the latest stage that lender should provide an initial disclosure documentation?
An IDD must be provided at first contact
Which is the only process which solicitors handle which is for the sole benefit of the buyer and not the lender?
The payment of SDLT
Who does the estate agent owe overall responsibility to?
The estate agent owes overall responsibility to the seller
What does a RICS condition report point out?
A RICS condition report points out all defects that are urgent and require attention
What must happen if a vendor cannot locate building regulation approval documents?
If they cannot locate the documents then the buyers solicitor will need to obtain an indemnity policy
How long is the reflection period for a second charge secured on a main residence?
The reflection period for a second charge secured on a main residence is 7 days
Who does indemnity insurance protect?
Indemnity insurance protects the buyer
Under MCOBS how long must lender keep records of arrears?
Under MCOBS, lenders must keep records of arrears for 3 years
Why may during a mortgage application a lender require accounts from a company director?
To confirm that the business has sufficient profits to maintain their earnings
