Mortgage products and advice

Question 1

What are the four questions that should be asked to determine whether a client’s mortgage needs have been satisfied?

Answer 1

• Which type of mortgage is most suitable and why?
• What interest option is most suitable and why?
• What repayment vehicle is most suitable and why?
• What anciallary products are most suitable and why?

Question 2

Comparing mortgage products - what four factors should be considered?

Answer 2

• Amount of Early Repayment Charges (ERCs)
• Flexibility of repayment term
• Arrangement fees
• Overall Annual percentage rate (APR)

Question 3

Comparing Mortgage providers

Answer 3

• Availability of mortgage if the property is unusual
• Portability
• Quality of service
• Level of one-off fees
• Further advances
• Criteria

Question 4

What is a further advance?

Answer 4

Where the lender makes a further loan secured on the same property. A borrower may find this benefit attractive for home improvements in the future.