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Unit 1 Topic 13

1 / 28

Which of the following is one way in which a repayment mortgage differs fundamentally from a full endowment mortgage?

2 / 28

What type of mortgage scheme would help someone on low income to become an owner occupier?

3 / 28

Which one of the following describes an advantage which a unit-linked policy has over a with profit policy, for mortgage repayment purposes?

4 / 28

For which one of the following borrowers might a fixed rate mortgage be most suitable?

5 / 28

Dick and Margaret have had their mortgage for two years and are concerned that interest rates have fallen but their monthly payment to the lender has stayed the same. Which type of mortgage do they have?

6 / 28

Which one of the following statements regarding a cap and collar mortgage is CORRECT?

7 / 28

Clive, at age 27, started a stakeholder pension plan, which he intended to use to repay the capital under his interest only mortgage. His stated occupation is office manager. After how many years minimum, will he be able to access his pension?

8 / 28

What is the main advantage of using a pension plan to support an interest only mortgage?

9 / 28

If a low-cost endowment is used as a mortgage repayment vehicle, the mortgage is GUARANTEED to be repaid:

10 / 28

On a with-profits policy, a reversionary bonus is:

11 / 28

Nick and Lynne are keen to take advantage of a better deal and remortgage with a new lender. However, their existing lender has informed them that if they move, they will have to pay an additional six months’ interest. The most likely reason for this is that

12 / 28

Peter takes a loan from a building society to buy a new house. He is the:

13 / 28

What is the main advantage of a ‘capped’ interest rate option when taking out a mortgage?

14 / 28

Which one of the following statements, about repayment mortgages, is TRUE?

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Which one of the following types of endowment will normally guarantee that the original mortgage loan will be repaid in full at the end of the term?

16 / 28

Which one of the following is a feature of a repayment mortgage?

17 / 28

With a pension mortgage, the loan is repaid using the:

18 / 28

Which is true of the capital repayments on a repayment mortgage?

19 / 28

Which one of the following statements in respect of a unit-linked endowment policy is correct?

20 / 28

If Kim and Chris opt for a repayment mortgage, the most suitable way to ensure that the loan will be repaid if one of them dies is by:

21 / 28

Which of the following is true in relation to re-mortgages and second mortgages?

22 / 28

An advantage of a variable rate mortgage is that:

23 / 28

How does a unit linked endowment plan running alongside an interest only mortgage work in practice?

24 / 28

Which one of the following types of mortgage provides a genuine reduction in the normal variable rates of interest?

25 / 28

Which one of the following is NOT an advantage of a flexible mortgage?

26 / 28

What happens to the capital outstanding during the duration of an interest only mortgage?

27 / 28

Why have endowment policies become less popular as a capital repayment vehicle for mortgages?

28 / 28

Compared to a full endowment, a traditional low cost endowment has a:

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