Unit 3 Topic 7&8 Flashcards
When arranging a mortgage, at which point does the legal charge take effect? A before exchange of contracts B on exchange of contracts C on completion D after completion
C on completion
What are the arrangements for paying any Stamp Duty Land Tax due on
completion of a house sale?
A The vendor’s solicitor is responsible for payment and will then invoice his
client for the amount paid.
B The buyer’s solicitor is responsible for payment of stamp duty land tax.
C The buyer will receive a bill from HMRC after the sale has completed.
D The vendor will pay the amount due direct to his solicitor.
B The buyer’s solicitor is responsible for payment of stamp duty land tax.
Denise is buying a property from Karen, and Denise’s lender is about to release
the advance. To whom will the advance be released initially?
A Karen
B Denise
C Karen’s solicitor
D Denise’s solicitor
D Denise’s solicitor
Ray and Barbara are selling their house and wish to take the garden shed to
their new property. Which of the following statements is correct?
A The items can be removed but only if this was stated in the sales particulars.
B The items can be removed if the intention to do so was specifically included in the sale contract.
C The items can be removed without giving any reason or stated intention.
D The items form part of the land being sold and cannot be removed.
B The items can be removed if the intention to do so was specifically included in the sale contract
Having considered Arthur’s needs, his mortgage adviser Alison is unable to offer
a suitable mortgage product from within the range considered. What
recommendation if any should she make?
A None
B The next best product in terms of cost
C The next best product in terms of features
D The next best product in terms of risk
A None
Which of these individuals or couples could accurately be identified as being
‘high net worth’?
A John who earns £200,000 a year and his wife Karen who earns £150,000.
B Paul who has a stocks and shares portfolio worth £3.5m.
C Keith who has £2.5m in savings and his wife Paula who has £2.2m in
savings.
D Jenny who earns £270,000 per annum.
B Paul who has a stocks and shares portfolio worth £3.5m.
Which of the following is not required in any initial disclosure document?
A Details about any fees to be charged on the customer
B The mortgage product recommended
C The adviser’s status
D Whether any commission is being received by a third party
B The mortgage product recommended
Which of the following is not required in any initial disclosure document?
A Details about any fees to be charged on the customer
B The mortgage product recommended
C The adviser’s status
D Whether any commission is being received by a third party
B The mortgage product recommended
Sara, a mortgage adviser on a face to face basis, has been asked to recommend a
mortgage for Ian and Jan. She has identified what she feels is the most suitable
mortgage and has a European Standardised Information Sheet (ESIS) for the
couple. What must she do before Ian and Jan make an application?
A Explain the importance of reading and understanding the ESIS and explain
the key details.
B Explain that the ESIS is an approximate guide to costs which may end up
higher.
C Tell the customer that they will send a copy of this to them within 5 working
days.
D There are no formal requirements.
A Explain the importance of reading and understanding the ESIS and explain
the key details.
A European Standardised Information Sheet (ESIS) is given to enable customers
to check that the proposed mortgage is suitable for their needs. What
information would not be contained in the ESIS?
A Details of who the lender is.
B Details of associated investment vehicles.
C Details of the overall cost of the mortgage.
D The interest rate on the mortgage.
B Details of associated investment vehicles.
MCOB 4 and 4A outlines the rules relating to advising and selling standards.
Which one of the following is not covered within the rules on advising and
selling?
A Inducements
B Initial Disclosure
C Suitability of advice
D The status of the adviser
A Inducements
A fax which is sent as an invitation to take out a mortgage would, under the
Mortgage Conduct of Business Rules, be classified as a:
A non-real time financial promotion.
B real-time financial promotion.
C solicited invitation.
D unsolicited invitation.
A non-real time financial promotion.
Which of the following would be able to arrange an execution only mortgage
without first receiving advice?
A any customer who requests it
B high net worth individuals
C those who are purchasing property under the ‘right to buy’ legislation
D those who are seeking to consolidate debt by remortgaging
B high net worth individuals
Gary is a trainee mortgage adviser, who started the role three months ago.
Assuming all other criteria have been met, at what point could a mortgage adviser
treat him as a professional customer if he applies for a new mortgage to buy his
first home?
A immediately
B in 6 months time
C in 9 months time
D in 12 months time
C in 9 months time
The minimum requirement for Rupinder and Pritti’s joint mortgage application
to be treated as a mortgage to high-net-worth borrower is that:
A Jointly, they have net annual income of a least £300,000 and net assets of at least £3m
B one of them has net annual income of at least £300,000 or net assets of at least £3m
C they each have net annual income of at least £300,000 or net assets of at least £3m
D they have joint net income of at least £300,000 or joint net assets of at least £3m
B one of them has net annual income of at least £300,000 or net assets of at least £3m
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
Annie is buying a brand-new apartment from a developer and has agreed to
exchange contracts conditional on a completion being set using a long-stop date.
In the event of the apartment not being ready for completion on that date she
will be able to
A apply to the small claims court for the return of her deposit
B cancel the contract and withdraw from the purchase without penalty
C claim compensation up to a specified limit
D insist on a reduction in the sale price up to a specified limit
B cancel the contract and withdraw from the purchase without penalty
When a mortgage intermediary is arranging a further advance on
a mortgage taken out in 2017, 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
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
(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
