Topic 27 Flashcards
Angela has made a partial repayment on her repayment mortgage.
Which of the following is most likely to be true?
a. She can choose to maintain her monthly payments at the level prior to the partial repayment in order to reduce the term.
b. The lender will always apply the payment to the mortgage account on the next mortgage anniversary.
c. The lender will alter the monthly payments on the next mortgage anniversary.
d. The lender will automatically reduce the term of the remaining mortgage.
a. She can choose to maintain her monthly payments at the level prior to the partial repayment in order to reduce the term.
Kevin is moving in with Paula into her house in the North of England. He will become joint owner of the £500,000 property currently held in her sole name. Kevin will also become a party to the £380,000 mortgage.
Which of the following is true regarding stamp duty land tax (SDLT), assuming a nil-rate threshold of £250,000?
a. Kevin will have to pay SDLT on his £190,000 share of the mortgage at the appropriate rate.
b. Kevin will have to pay SDLT on his £250,000 share of the house at the appropriate rate.
c. Such arrangements are never subject to SDLT because the original purchaser would already have paid it.
d. There would only be an SDLT charge if Kevin also paid Paula more than £60,000 to become joint owner.
d. There would only be an SDLT charge if Kevin also paid Paula more than £60,000 to become joint owner.
Nayan and Chandra are considering moving home now that their first baby is due.
Which of the following statements is true?
a. The lender’s checks will be less stringent now that they are on the property ladder.
b. They cannot use existing life policies to protect the new mortgage.
c. They will be able to reclaim part of the higher lending charge they paid when they bought their existing property.
d. They will need to set aside money to cover fees and costs.
d. They will need to set aside money to cover fees and costs.
Phil and Vicky have decided to change their existing £100,000 mortgage. They wish to stay with their existing lender. In which of the following situations must the lender carry out a full affordability assessment?
If they wish to:
change from a 4% fixed rate to a 4% capped rate.
change mortgage products and add the £295 mortgage arrangement fee to their mortgage.
change the mortgage from a variable rate to a fixed rate.
increase the borrowing by £6,000 to pay for a new conservatory.
increase the borrowing by £6,000 to pay for a new conservatory.
Which of the following would not be an acceptable component of a lender’s mortgage exit administration fee, in line with MCOB rules?
Deed release fee.
HM Land Registry charges.
Interest due up to the next mortgage anniversary.
Staff processing costs.
Interest due up to the next mortgage anniversary.
