Topic 8 Flashcards
John’s regulated mortgage is about to start.
Which of the following is not required in the information that must be given to John before his first mortgage payment is due?
a. The date on which mortgage payments will be collected.
b. The amount of the first and ongoing mortgage payments.
c. The sum assured premium, term and provider of any associated life policy.
d. What to do if he has difficulty paying the mortgage or falls into arrears.
c. The sum assured premium, term and provider of any associated life policy.
A firm wishes to promote its mortgage products, including the attractive interest rate deals it has on offer. The promotion will take the form of a mailshot. Which of the following is true in relation to the Mortgage Conduct of Business (MCOB) rules about such a promotion?
The:
a. firm must keep a record of the promotion for at least three years from the date it was last used.
b. promotion can include commentary on a competitor’s poor reputation for customer service.
c. promotion does not need to state, at this stage, if there are conditional product purchases attached to the mortgage.
d. promotion must show the APRC, and ensure it is distinguishable from any other rates shown.
d. promotion must show the APRC, and ensure it is distinguishable from any other rates shown.
The Mortgage Conduct of Business (MCOB) rules ban unsolicited real-time promotions.
What does this term cover?
a. Cold calling.
b. Direct mail.
c. Off-the-page advertising.
d. Requests for referrals.
a. Cold calling.
When a mortgage intermediary is arranging a further advance on a mortgage, which of the following is not required to be included in the initial disclosure documentation?
a. Alternative finance options.
b. Any limitations on the services offered.
c. How the firm will be remunerated.
d. The mortgage product recommended.
d. The mortgage product recommended.
Which of the following would be able to arrange a mortgage on an execution-only basis without first receiving advice?
Any customer who requests it.
High-net-worth individuals.
Those who are purchasing property under the right to buy legislation.
Those who are seeking to consolidate debt by remortgaging.
High-net-worth individuals.
