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27 Cards in this Set
- Front
- Back
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Which of the following does NOT need to be confirmed to the customer at the start of the mortgage contract? |
The risk factor the lender places on the mortgage contract. |
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Where can the firm hold client money? |
In a client's bank account. |
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which is the main statue in England and Wales and Northern Ireland relating to property ownership? |
Law of property act 1975 |
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What is the name given to a covenant which requires the owner of land to carry out certain actions? |
Positive covenant |
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What may a lender do in order to avoid an overriding interest being created on a property? |
Require any person aged 17 or over who will be living in the property but not be a party to the mortgage to sign a consent to mortgage form. |
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In Scotland, how can a local authority force a homeowner to undertake repairs on their property? |
By serving a form of repair notice on the owner |
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Which act makes estate agents fairly represent property for sale? |
Property misdescription Act 1991 |
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Which of the following best describes the formalities needed to make a will valid in England, Wales and Northern Ireland? |
It most be in writing, must be signed by testator and most be witnessed by two others. |
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Where a property is held on a tenancy in common basis, if one borrower dies what happens to the mortgage debt? |
A share of the debt passes to the survivor with the remainder going to the deceased's estate. |
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Who do borrowers under the governments firstbuy scheme make their local repayments to? |
The national homebuy agent. |
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Which of the governments housing schemes applies to both new and existing home? |
Help to buy mortgage guarantee scheme. |
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Which of the following best describes the role of a mortgage packager? |
To carry out the processing and administration regarding a mortgage application. |
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Who must usually handle the legal work related to the purchase of a property? |
A solicitor or a licensed conveyancing firm. |
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In England Wales and Northern Ireland, at what point should a purchaser put building insurance in place for the property they are purchasing? |
Just before exchange of contracts. |
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What does the NHBC build mark scheme provide insurance against? |
A builders fraud or insolvency and against faults in the property within the first ten years of the property's life |
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Which of the following statements best describe a mortgage lenders offer of advance? |
A conditional mortgage offer, not a contract |
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If a with - profit endowment has a bonus paid at the end of the term or in the event of death, what is this bonus called? |
Terminal bonus. |
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Regarding endowment policies, when should an initial review of the performance of the policy take place? |
No later than the earlier of half the policy term, ten years from policy inception or ten years from maturity. |
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Which of the following correctly describes the tax treatment of investments held within an NISA? |
They are mainly free of income tax and completely free from capital gains tax. |
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Within an open ended investment company who must be responsible for fund management? |
Authorised corporate director. |
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What is the name given to the mortgage that allows the lender as well as the borrower to benefit from increases in house prices? |
Shared apritation |
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What is used to compare the cost of mortgages? |
Annual percentage rates APR |
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On a combined life assurance and critical illness policy, when would the sun assured be payable? |
100% of the sun assured on death or diagnosis of a critical illness, whichever occurs first. |
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If a lender has agreed to provide a further advance to a borrower on their mortgage but the original deed did not allow for this, what deed must be excited? |
Deed of further charge. |
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If a mortgage is described as potable what does that mean? |
The mortgage can be transferred to a new home. |
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Which of the following is FALSE regarding income support? |
It can only be claimed by people aged under 60 |
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Which of the following statements is false regarding support for mortgage interest (SMI) |
It depends upon an individual having paid sufficient national insurance contributions. |
