Mock Answers Flashcards
Financial services act 2012
Twin peaks approach to regulation
3 regulatory bodie:, FPC, PRA, FCA
ESIS
Customer must be supplied with this before mortgage application can be submitted
Professional indemnity insurance unless
Can rely on guarantee of another authorised person with net tangible assets of over £10m
Are a subsidiary of a bank, building society, insurance company or friendly society
Client money
Must be held in a separate account and banked within one day of receipt
Architect cost as a percentage of self build project
10-15%
Lenders most advantageous method of dealing with a defect
Retention
Not part of a property description
Price
Property valuation, responsibilities of building societies
A physical survey is not always required
Which section of an offer of advance would details of fees and charges apply?
The mortgage
Unit linked policies
Reversionary bonuses apply
Standard deferred periods for income protection insurance
13 weeks
52
104
In leasehold properties, buildings insurance is usually held by the…..
Freeholder
How do insurers area the problem of changes to outstanding mortgage balances as a result of fluctuating interest rates?
By guaranteeing that premiums will not rise unless a high rate of interest becomes chargeable
What best describes a stepped rate?
The rate applied to the account may move during an initial borrowing period
The certification regime applies to….
Not senior managers, but whose role could cause harm to the firm or its customers
Under tenancy in common, on the death of one owner, their share….
Can pass according to their will
When will a claim be paid under a mortgage indemnity guarantee policy?
When a repossessed property is sold and the lender suffers a loss
Credit reference agencies generally keep records for how long,?
6 years
Which type of endowment policy will most readily facilitate repaying an interest only mortgage early
Unit linked
When a buy to let property is sold, at what rate would any gains be taxed
18-28%
A sole borrower dies without leaving a will. The personal representatives can sell the property to redeem the mortgage when
Letters of administration have been issued
For what type of reference might a borrower be most likely to be charged a fee?
Existing/previous lenders reference
Who prepares the contracts which will be exchanged during the house purchase process?
The vendors solicitor
Three plus one in income multiples means….
3 x main income plus one times secondary
Buildings insurance should be based on the…..
Rebuilding/Reinstatement cost
For many borrowers the main reason for remortgaging is to……
Obtain a better interest rate deal
Benefits under a mortgage payment protection plan are usually to protect
Mortgage payments plus associated bills
Mortgage rescue schemes are operated by….
Local housing authorities
A higher rate taxpayer can potentially recieve tax relief on his pension mortgage contribution at what rate…..
40%
How long must the original lease have been granted to enable someone to buy a freehold?
21 years
Bankruptcy normally lasts for one year but can be extended up to how long?
15 years
Home reversion schemes can provide….
Either an income or lump sum
What is the maximum amount by which the cap on discount for council tenants in England buying their homes could increase each year?
In line with inflation
Three NHBC is best described as….
A regulator and standard setter
What type of valuation figure does a basic valuation report provide?
An open market valuation
Under MCOB how long must a lender keep records of dealing with customer arrears?
Three years
A lender may only reposess a property of a borrower in arrears if…….
A court order has been granted
If a property is sold with negative equity after using a higher lending charge….
They will be potentially liable to repay the balance outstanding to the higher lending charge insurer
After what period can the owner sell a right to buy property without penalty?
5 years
Under SMI when would payments commence?
After 39 weeks
Maximum time period for IVA
Five years
First payment upon claiming SMI support for mortgage interest
39 weeks
Under the financial services act 2012, the back of England had overall responsibility for…..
Financial policy committee and Prudential regulation authority
Discounts on discount mortgages are…..
Not repaid
Waived in entirety
How many types of mortgage advice are available?
3
What does “the average clause’ apply to?
Buildings insurance claims is a property is under insured
What percentage of building society funds must be raised by deposits of its members?
50%
What is not commonly reported in a basic valuation for mortgage purposes?
Details of all serious and potential defects
Tenants in council houses have had the right to buy since…..
1980
