Set 2 Flashcards
What is the FCA’s overarching strategic objective?
Protect and enhance the intergrity of UK financial system
For mortgage to be deemed regulated, what % must be used for residential dwelling?
40%
What type of communication is exempt from MCOB rules
A letter to one customer
What’s the most common method of house sale in Scotland?
Private Bargain
In Scotland, what type of price is advertised when selling a property?
Minimum acceptable or a fixed price
What is usually the final stage of a self build for releasing funds?
Connecting Utilities
In Scotland, what’s the name given to the contract between lender and borrower (mortgage deed)
Standard Security
When building a new home, most lenders insist on a guarantee issued by the?
Naitonal House Building Committee (NHBC)
If a self-build / improvements made to property not covered by Buildmark, what will lender insist upon before releasing funds
An architechts certificate to certify completion of works.
What is Grade I, II and III for England and Welsh buildings
I - Buildings of exceptional interest (2.5% of listed buildings)
II - Particulary important buildings of more than special interest (5.5%)
III - Buildings of special interest, warranting every effort to preserve them (92%)
What is Category A, B and C for Scottish properties (Historic Scotland)
A - National or International importance
B - Regional Importance
C - Local Importance
What rights / obligations resemble Uk’s easement and covenants
Real Burdens
When are fee’s charged in H2B Equity Loan scheme
After 5 years
Historically, how did banks mainly finance their mortgage lending?
Borrowing in the wholesale market
What’s correspondent lending?
Firm that deals directly with the borrower is not the one providing funds for the loan.
Average conveyancing charge?
Around 0.5% of purchase price
When buying a house in Scotland, when should he arrange for building insurance to commence? England?
As soon as an offer is made. In England, it should be when contracts exchanged.
How long do records of arrears telephone calls need to be held for?
3 years
When do you get Child Benefit?
if you’re on low income and responsible for bringing up a child who is
under 16 or under 19 in Full time education
Since April 2018, how is SMI received? What the waiting period if not in receipt of UC. What benefit also makes you eligibe for SMI?
As a loan, which is repaid when the property is sold or on death. 39 weeks. Income related ESA
Which Act protects borrowers when entering into certain types of lending agreements?
Consumer Credit Acts
How does deferred interest mortgage work?
Provider charges interest on entire loan, but allows payment of only part of this interest for a period of time and therefore capital outstanding on mortgage increases.
What are the different ways of calculating interest rates?
Annual rest - interest calculated at start of each year and debited into account in advance
Daily Rest - same but daily
Annual Review - Fixed payments agreed at start of year then gets reviewed afterwards, might be overpaid or underpaid and then the payment is updated to reflect this
Ijara Mortgage
Bank buys property and then leases it to client. Payments made to bank partly cover the rent partly cover the purchase of the property. most common islamic mortgage bank owns property until bought out
