Topic 9 The Role of the Mortgage Advisor Flashcards
When giving advise who’s interest should the mortgage advisor be considering?
Customer’s
The primary requirement of advice is what?
Any advice given is suitable for the customer’s needs
The 4 stages of the advice process are?
- Factfind
- Research
- Present
- Implement
Which area of the factfind is this?
Customer’s intended purchase price & the type of property to be purchased
Intentions
Which area of the factfind is this?
Customer’s income & outgoings to determine how much they can comfortably afford to borrow
Income & Outgoings
Which area of the factfind is this?
The amount of deposit available & other cash available to meet expenses
Deposit & Cash
Which area of the factfind is this?
Customer’s current employment status & history
Employment
Which area of the factfind is this?
How a customer manages their finance.
Is their account in usually in credit or debit
Management of finances
Which area of the factfind is this?
Customers budget & their ability to deal with rate rises
Budget & rate rises
Which area of the factfind is this?
Potential/intention for the customer to make early repayments. Partial or total
Early repayments
Which area of the factfind is this?
Customers feelings about the term of the mortgage
Term
Which area of the factfind is this?
Protection needs that will arise when the mortgage is in place
- Life cover
- Critical illness
- Mortgage payment protection
Protection needs
Which area of the factfind is this?
Customer’s attitude in relation to risk
- Normally takes the form of a risk questionnaire resulting in a risk profile
Attitude to risk
From a factfind what 2 key factors would an advisor establish?
- How much the potential borrower can afford each month
- Type of mortgage they would prefer
At the recommendation stage what should the advisor do so they can gauge whether the customer has understood what is being recommended?
Ask the customer to read the information and explain the key details
How will an advisor continue to liaise with a customer once an application has been submitted to a lender?
- Explain any additional information required by the lender & pass this back to the lender
- Laisse with the lender & keep the customer informed
- Explain offer documents to the customer
What is “Ethical Advice”?
Best advice/product for the customer at the time regardless on what is best for the customer
What 4 things does the advisor need to establish when trying to give ethical advice?
- Customer needs
- Customer circumstances
- Customers objectives
- Customer attitude to risk
Which of the FCA’s principles of business is this?
A firm must conduct it’s business with integrity?
Principle 1
Which of the FCA’s principles of business is this?
A firm must conduct it’s business with due skill, care & diligence
Principle 2
Which of the FCA’s principles of business is this?
A firm must take reasonable care to organise & control it’s affairs responsibility & effectively with adequate risk management
Principle 3
Which of the FCA’s principles of business is this?
A firm must pay due regard to the interests of it’s customers & treat them fairly
Principle 6
Which of the FCA’s principles of business is this?
A firm must pay due regard to the information needs of it’s clients & communicate information to them in a way that is clear, fair and not misleading
Principle 7
Which of the FCA’s principles of business is this?
A firm must manage conflicts of interest fairly both between itself & it’s customers & between a customer and another client
Principle 8
