Other Flashcards
What are the three types of survey and valuations that can be commissioned by the lender?
RICS Level 1: RICS condition report
RICS Level 2: Survey & Valuation report
RICS Level 3: Building survey
Is the value employed by the lender or borrower?
The lender
If a property is destroyed by a fire between exchange of contracts and completion, the costs of reinstating the property would fall on the…
Purchaser
What is a Debt Management Plan?
It’s an agreement between you and your creditor to pay off all your debts when you can make small payments every month
On the death of a sole borrower, the most common outcome for a mortgage lender is that the:
Mortgage is repaid from the life policy proceeds or the property is sold
In the early years of a repayment mortgage, what is being paid off first?
Most of your monthly repayments at the start go towards servicing the interest of the debt, with just a small amount aimed at the capital
Can a further advance be arranged with a different lender than the mortgage?
No, it must be with the same lender
What is an offset mortgage?
It’s a type of mortgage that is linked to one of your savings account
Can either the buyer or seller withdraw, after exchanging contracts, without penalty?
No, they will both incur a penalty
What is a benefit of using a unit linked endowment vs an ISA for an interest only mortgage repayment vehicle?
Unit linked endowment has built in life cover, whereas the ISA wont
Under new house rules, a builder must put right any defects resulting from their failure to meet NHBC standards that occur in the first how many years?
In the first 2 years
MCOB rules require firms to issue the current FCA information sheet on mortgage arrears to customers, within how many working days of becoming aware of any arrears?
Within 15 working days of becoming aware
A mortgage contract set up on a joint tenancy basis means that on the death of one tenant…
The responsibility for maintaining the mortgage falls to the survivor
What is the waiting period for Support for Mortgage Interest (SMI) from the date of claim to receipt of benefit?
39 weeks
The Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB) covers all loans that are
secured by a first or second charge on a property that is owned and occupied by the borrower or a close relative, where at least 40% of the property is used for this purpose.
