Topic 9: The role of the mortgage advisor

Question 1

What is a Factfind?

Answer 1

Gathering relevant information to inform the financial advice process.

Question 2

What is Ethical advice?

Answer 2

Based on what is in the borrower’s best interests, taking account of their circumstances, needs, aims and attitude to risk. It is what the adviser thinks is the right thing to do, professionally and morally, and the advice does not conflict with the adviser’s conscience.

Question 3

What is the advice process?

Answer 3

1. Factfind
2. Research
3. Present
4. Implement

Question 4

What will the factfind cover? (10 things)

Answer 4

1. Intentions
2. Income and outgoings
3. Deposit and cash
4. Employment
5. Management of finances
6. Budget and rate rises
7. Early repayment
8. Term
9. Protection needs
10. Attitude to risk

Question 5

Explain ESIS and KFI?

Answer 5

Remember: an ESIS must be provided for an MCD regulated mortgage, which will represent all new mortgages. A KFI must be
provided for a regulated mortgage, which will apply to changes to mortgages originally taken out before 21 March 2016.

Question 6

HOW DOES THE ADVISER CONTINUE TO LIAISE WITH THE CUSTOMER?

Answer 6

1. Explain any additional
   information or
   documentation requested
   by the lender, and pass the
   customer’s responses /
   documents on to the
   lender if necessary.
2. Liaise with the lender
   to keep the customer
   informed as to the
   progress of the application
   and explain each stage of
   the underwriting process
3. Explain offer
   documentation to the
   customer to make sure
   they are comfortable
   with everything

Question 7

What are Ethics?

Answer 7

Conscious decisions taken by
individuals and groups based on moral values; distinguishing right from wrong and choosing to do what we believe to be right.

Question 8

What does the advisor need to establish?

Answer 8

• Customers needs
• Customers circumstances
• Customers objectives
• Customers attitude to risk