U4 Topic 11

Question 1

Q1

The lender has discovered a default registered against a potential borrower during a credit reference search for a mortgage application.
Which of the following is false?

-The default will show on the credit record for six years from the date of the default notice
-The default will be removed from the credit record if the arrears are settled
-The record will show the amount of the original default, subsequent payments made and the current balance.

Answer 1

-Default will be removed from credit record if arrears are settled.

The default will remain on the record for six years, even if this arrears are settled within that period .

Question 2

Q2

Which of the following statements are true of payday loans?
Select all

-They charge high interest
-Long form of lending
-Mortgage lenders may not lend to those who have used them
-Seen as a regular form of borrowing
-They may not show up on credit searches
-Lindas use multiple data searches to check for them

Answer 2

-Charge high rates of interest
-mortgage ends may not loan to those who have used them
-They may not show up on credit searches
-Lenders use multiple data searches check for them

Question 3

Q3

Credit scoring :

-Is a standardised process offered to lenders by specialist providers
-Is a statistical tool to determine probability
-Blended data and customers attitude to produce a score

Answer 3

-Is a statistical tool used to determine probability

Question 4

Q7

Sue and Paul jointly own their home.
Paul has been declared bankrupt. The trustee and bankruptcy is considering options. The trustee:

-Cannot for sale because it’s jointly owned
-Can’t force for sale but may be required to delay the sale for 12 months
-Has two years from the date of bankruptcy to decide whether to sell the property to pay debts

Answer 4

-Can’t cause for sale but may be required to delay the sale for 12 months