Cemap2 Flashcards
(10 cards)
1
Q
Question
A
Correct Answer
2
Q
What is the role of the FCA in the mortgage market?
A
Ensures fair treatment of customers
3
Q
What document outlines mortgage terms before a contract is signed?
A
ESIS
4
Q
What does a DIP provide?
A
Initial lender agreement subject to checks
5
Q
What policy is suitable for a repayment mortgage?
A
Decreasing term assurance
6
Q
What is the risk of an interest-only mortgage?
A
Capital not being repaid
7
Q
What does income protection do?
A
Replaces income during illness
8
Q
What are arrears?
A
Missed mortgage payments
9
Q
What is underwriting in mortgages?
A
Risk assessment process
10
Q
What happens during repossession?
A
Lender takes property due to unpaid debt
