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Question 13: Which one of the following would NOT usually be a standard condition to an offer of mortgage advance but would only be added when circumstances required?

A. Subject to consent to mortgage form

B. Subject to satisfactory title

C. Subject to acceptance before specified expiry date

D. Property must offer vacant possession

Question 14: What is the legal status of an offer of advance from a mortgage lender?

A. It is legally binding on the lender

B. Once accepted it is legally binding on the lender and borrower

C. It is a contract between the lender and the borrower

D. It describes the terms and conditions that will form the basis of a contract

Question 15: Why is it important to stress to a first-time buyer that his mortgage loan will be secured against their main residence?

A Gains on the property are only exempt from Capital Gains Tax if the mortgage is secured against the property.

B The purchase is only exempt from Stamp Duty Land Tax when the loan is secured against the property.

C If they fail to maintain the mortgage loan repayments, they could lose their home.

D If they fail to maintain the mortgage loan repayments, they will be unable to declare themselves bankrupt.

Question 16: Lenders require, as a condition of a mortgage offer, that the borrower's children aged over 17 sign a form, which will prevent them from gaining an overriding interest under Section 70 of the Land Registration Act 1925. This is known as a:

A. deed of family arrangement

B. tenancy agreement

C. consent to mortgage form / occupiers interest

D. disclaimer of interest

Question 17: Which one of the following is FALSE of the lender’s rights related to a legal charge? The lender can:

A. insure the property

B. call in a mortgage only if the account is in arrears

C. charge the borrower for the cost of meeting local authority requirements

D. transfer the mortgage to another institution only with the borrower’s permission

Question 19: Which body is responsible for setting UK base rates?

A The Bank of England

B The European Central Bank

C The International Monetary Fund

D The Treasury Select Committee

Question 30 - Which of the following is NOT a key component of the FCA Consumer Duty?

a) Right to receive products and services that meet consumer needs

b) Right to receive products and services that perform as expected

c) Right to receive products and services at discounted prices

d) Right to receive products and services from firms that provide an appropriate level of care and service