Topic 2- Mortgage application assessment Flashcards
1
Q
3 P’s of assessing mortgage application
A
Person
Purpose
Property
2
Q
Buy to let mortgage contract standards
A
- Interest coverage ratio = 125%
- Income affordability test
- Interest rate affordability stress test
3
Q
Interest Coverage ratio (ICR)
A
rental income to mortgage payments (outgoings)
4
Q
Special FCA Categories x5
A
Mortgage prisoners Vulnerable customers Minors Lack of mental capacity Insolvency and bankruptcy
5
Q
Individual Voluntary Agreement
A
Agreement over 5 years
reduced payments
6
Q
Debt relief order
A
Debts less then £20,000
12 month period
7
Q
Powers of attorney
A
Ordinary- Mental incapacity
Enduring- Finance
Lasting- Finance
Lasting- Health and welfare
8
Q
Donor
A
The person granting powers to their representative
9
Q
Deputy
A
Appointed by the court of protection to look after the affairs of someone who becomes mentally incapacitated .
