Certificate in Mortgage Advice and Practice (CeMAP) 2 Practice Exam

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• A Homebuyers Report is a compromise between which two levels of survey?
• Which statement is correct in respect of Sharia-compliant home purchase plans?
• Who has the right of subrogation under a Mortgage Indemnity Guarantee (MIG) policy?
• Which would not be deemed a 'Permitted Development'?
• A Debt Relief Order (DRO) grants a moratorium on debts owed to creditors listed in the order. How long does this moratorium last?
• For an interest-only mortgage, how long must records be kept?
• When can a firm not arrange business on an execution-only agreement?
• Which of the following is true where a remortgage is arranged as part of a debt consolidation programme?
• The HomeBuyer Report (Survey) excludes which items?
• Which of the following is not a chapter of MCOB?
• Under MCOB 11, what is the lender required to do regarding responsible lending?
• Under MCOB 11: Responsible lending, how long must records be kept?
• Which items are included in basic quality of life expenditure?
• In the endowment with-profits plan, premium reductions last for which period before increases occur?
• The FCA requires insurers to carry out a review of a mortgage endowment:
• What does a title indemnity policy protect against in property transactions?
• Which statement about FCA regulated mortgages and the Consumer Credit Acts is true?
• Leaseholders cannot be qualifying tenants where which of the following conditions applies?
• When arranging a second-charge loan, which documents must the lender provide?
• Ben has bought a 50% share in a shared ownership flat. Which of the following conditions would not be contained in the lease?
• Which statement best describes equity release in retirement planning?
• Which scenario would prevent a firm from arranging business on an execution-only mortgage basis?
• An attachment of earnings order requires what action by the debtor's employer?
• Which of the following statements about reversionary bonuses in with-profits policies is true?
• Which statement about shared ownership is true?
• What percentage of a building society's commercial assets can be held in loans to limited companies secured on land?
• A payout for a standalone critical illness policy could take up to how many days after a claim is submitted?
• Are home reversion plans regulated?
• In offset mortgage, interest charged on which amount?
• What best describes a puisne mortgage?
• What age can you access a Lifetime ISA?
• In mortgage regulation, ESIS stands for?
• What happens when a previously unregistered property undergoes compulsory registration?
• In a typical sub-prime mortgage compared with a standard mortgage, which is true?
• In a shared ownership arrangement, what must the borrower do if they want to sell their share?
• Premiums of qualifying policies are limited to how much per year?
• What is the effect on property ownership when taking a lifetime mortgage?
• What does a directors' capital account record?
• For how many years must an ESIS/KFI be kept?
• What does equity release enable?
• Which of the following is excluded from the APRC calculation?
• Would a capped-rate mortgage offer overpayments?
• In a modern with-profits endowment policy, which statement about bonuses is true?
• Rent to buy schemes apply to which kind of properties?
• What does the term 'fee simple' refer to in property tenure?
• Investment advisers are required to complete how many CPD hours per year?
• A company's marketing mailshot has been withdrawn and will not be used again. For how long must the mailshot be kept?
• Which statement best describes a covenant in property terms?
• What is a home reversion scheme?
• For an interest-only mortgage, which statement about record-keeping is true?
• What is a discounted-rate mortgage?
• Under Mortgage Conduct of Business rules, how long must records of dealings with a borrower in arrears be retained?
• What is the key difference between a lifetime mortgage and a Home Reversion Plan?
• What is pension freedom?
• Depositing a life assurance policy with a lender as security is known as:
• What does MIG stand for in the context of mortgage guarantees?
• In relation to an July 2018 application for a three-year fixed-rate buy-to-let mortgage for business purposes, when assessing affordability under PRA rules, lenders must what?
• Within what period would the lender normally be able to take possession after an outright possession order is granted?
• The NHBC Buildmark Scheme provides a guarantee for the first ten years of the property's life. If protection started in June 2018, in what year does it expire?
• What is the primary purpose of a Mortgage Indemnity Guarantee (MIG) policy?
• What does a balance sheet represent?
• Which statement about the Murabaha method is correct?
• What is the main difference between a tracker rate mortgage and a discounted rate mortgage?
• Which statement about net yield on a buy-to-let property is correct?
• Which items are typically commented on in a Level 1 Condition Report?
• What is the effect of a trustee filing a Form J restriction with the land registry in relation to a bankrupt's property?
• What is a second-charge loan?
• In corporate terms, what is a participator most commonly?
• Who might a hybrid mortgage scheme benefit?
• A Level 1 Condition Report (RICS survey Level 1) is associated with which professional body?
• In mortgage regulation, what do the initials KFI and ESIS stand for?
• What is the minimum fixed tenancy term for a sale and rent back arrangement?
• A stamp duty land tax return must be submitted within how many days of completion?
• A puisne mortgage is characterized by which of the following?
• Which statement about the Help to Buy Equity Loan scheme is true?
• In planning terms, what does Permitted Development refer to?
• Which statement correctly defines gross yield and net yield?
• Within what period must a lender inform a borrower of its intentions to pursue the remaining shortfall after default and sale?
• With buy-to-let property, capital gains tax (CGT) is payable within how many days?
• A stamp duty land tax return must be completed in how many days after completion?
• Which statement is NOT true about the 28-year-old Jane's repayment plan?
• An easement in land law attaches to which of the following?
• For how long must customer information records be kept by a firm that makes recommendations?
• Shaun wishes to increase his existing £125,000 mortgage to £155,000 and is considering his options. Which of the following costs is most likely to apply to a remortgage, but not a further advance?
• Explain Equity Share scheme.
• A water bill is an example of which budget category?
• What is a deed of postponement?
• Under the Murabaha method, which statement is true?
• Kristina has just arranged a discounted rate mortgage. This means that:
• Lifetime ISA contributions cap per year, maximum is?
• A director's loan can be interest-free if the amount borrowed is below what threshold?
• Which statement best describes the two versions of a Homebuyers Report?
• In the endowment premium arrangement, after the initial period, premiums increase by what rate annually?
• Which scenario would indicate an execution-only arrangement is inappropriate?
• In a mortgage ranking, where does a puisne mortgage stand relative to the first charge?
• In a property transaction, what does consideration typically refer to?
• In relation to anti-money laundering requirements, how long must evidence of a customer's identity be retained?
• How many days after completion must SDLT be paid through the solicitor?
• Which version of the Homebuyers Report includes a valuation?
• True or false: Net yield on a buy-to-let property always includes mortgage payments.
• To apply for a lease extension, how long must the owner have held the lease?
• What is the annual pension freedom bonus rate after more than five years?
• What is the minimum deferred period for income protection?
• In property terms, what does tenure mean?
• In an execution-only mortgage arrangement, who makes the final product choice?
• In regulated and MCD regulated mortgages, how long must an offer document be kept for?
• Which document is used to illustrate the key features and risks of a mortgage to a consumer?
• What is the term for the insurer's remedy to pursue recovery from a third party after paying a claim?
• When giving advice on insurances an individual must complete how many hours of CPD per 12 months?
• Which statement best describes the HomeBuyer Report?
• Who completes the Seller's Property Information Form during a property sale?
• Does the guarantor have the right to be informed of mortgage payments missed or be able to inspect mortgage documentation?
• Which statement about the Support for Mortgage Interest scheme is false?
• At what age can individuals access pension freedoms?
• Rent to buy schemes apply to which kind of properties?
• Which statement best describes a Level 1 Condition Report?
• To meet the FCA definition of a home reversion plan, the specified period must be at least:
• If a marketing mailshot is withdrawn, what is the retention period?
• If the terms of a County Court Judgment (CCJ) are not met, which enforcement option can be issued?
• What is meant by a qualifying life policy and its advantages over non-qualifying policies?
• Discounted-mortgage interest rates are guaranteed not to change for a defined period.
• Which document discloses known issues affecting a property that could impact a sale?
• Creditors representing at least what percentage of the debt must agree to the IVA?
• A standalone critical illness policy will pay out on the earlier of death or diagnosis of a specified illness immediately. True or false?
• Which statement best describes Sale and Rent Back?
• Which items are included in basic essential expenditure?
• Upon a binding offer, how many days reflection period must be given to the borrower?
• Which statement best describes the three expenditure categories used to calculate free disposable income?
• Which statement best describes tracker rate mortgages in relation to the lender's SVR?
• Which statement best describes a balance sheet?
• What part, if any, of the benefits payable under a mortgage payment protection insurance (MPPI) scheme is subject to tax?
• Which enforcement option involves deduction from a debtor's earnings to repay debts?
• An MIG insurer is entitled to exercise its right of subrogation within how many years?
• If a recommendation is made over the phone, within how many working days must an illustration be sent?
• Which feature of a mortgage can avoid the need for 'tacking' by allowing additional funds to be drawn down later?
• Which of the following is untrue in relation to MCOB rules and second charges?
• What is one key difference between a sole trader and a director in terms of how they pay tax?
• Who pays mortgage indemnity policy?
• What is reinsurance?
• Which document records a running dispute between neighbouring properties when one party wishes to sell?
• If a survey shows significant work is required on a roof, which lender action is most likely?
• What does the term 'redemption' mean in the context of property finance?
• Under the Neighbour Consultation Scheme, neighbours sharing a boundary have to lodge objections within how many days after receiving notice?
• In a modern with-profits endowment policy, which statement about bonuses is correct?
• During a Debt Relief Order, the moratorium on listed debts lasts for how long?
• What is a close company?
• If Jennie takes out a lifetime mortgage with Equity Release Council rules and uses the scheme's equity release roll-up facility, which implication is true?
• In a scenario where a borrower wants an interest-only mortgage with a flexible repayment vehicle, which product best suits as the repayment vehicle?
• What is the purpose of a title indemnity policy fee when starting a mortgage?
• In an easement, who benefits from the right?
• MCOB rules only apply to second charges taken out for business purposes if the loan is for not more than how much?
• How long will a MPPI cover a borrower's mortgage payments if they are unable to work due to accident/sickness?
• In what year did home reversion plans become regulated?
• Lifetime ISA rule: stop paying in at what age?
• What is Subrogation?
• After binding offer, what is the reflection period required?
• Which statement best describes the three expenditure categories used to calculate free disposable income?
• An application for registration must take place within how many months?
• Who is typically responsible for enquiring about disputes between a vendor and their neighbour during a property sale?
• The low-cost with-profits endowment has reduced premiums for how many years?
• What happens when the discount period ends on a discounted-rate mortgage?
• Which option would best meet their needs for Jackie and John, who face a shortfall on an interest‑only mortgage and plan equity release at age 60?
• In contract law, what is consideration?
• A Home Reversion Plan typically involves which arrangement?
• What is a personal representative?
• A leaseholder who wishes to sell should consider extending the lease before marketing if the lease has less than how many years to run?
• Which statement correctly lists the two versions of a HomeBuyer Report?
• If terms of a CCJ are not met, which enforcement option can be issued?
• When is the latest date a lender must write to warn a borrower in arrears after the lender becomes aware of the arrears?
• If any individual buys a property intended for use as their main residence before selling their existing home, how long do they have to dispose of their original property to claim back the SDLT?
• What is an offset mortgage?
• Which type of unit linked fund is most commonly used for investment intended to fund mortgage repayments?
• In an offset mortgage scenario, with a £150,000 loan and £15,000 offset, at 4.5% interest, approximately how much interest will be charged each year?
• For regulated mortgage offers, how long must the offer document be retained?
• What are the two versions of a HomeBuyer Report?
• In regulated and MCD regulated mortgages, how long must an offer document be kept for?
• In mortgage indemnity policy arrangements, who bears the cost typically?
• Equity release repayment triggers?
• Can the sum assured be increased with a convertible term insurance?
• What triggers a first registration of title in property law?
• What does tacking refer to in the context of mortgage charges?
• Which statement about leasehold tenure is true?
• How often must insurers review a mortgage endowment under FCA requirements?
• Which statement about equity share scheme is true?
• What is the minimum period a tenant must be secure to access the right to buy?
• In mortgage regulation, what does KFI stand for?
• How long must a Discount starter home be owned for before renting out?
• Which statement best describes the Homebuyer Report (Survey)?
• Which of the following could be considered an advantage of a tracker rate mortgage over a standard variable-rate mortgage offered by the same lender?
• How long will a tracker follow the Bank of England base rate?