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QFA LOANS - SAMPLE PAPER 2
QUESTIONS WITH COMPLETE
SOLUTIONS
A gglifetime ggloan ggis ggwhere: A gga ggproperty ggis ggjointly ggowned ggby ggthe gglender ggand borrower. B ggthe ggloan ggis ggrepaid ggfrom ggthe ggsale ggproceeds ggof ggthe ggproperty. C ggthe ggborrower ggpays gga ggnotional ggrent ggfor gguse ggof ggthe ggproperty ggduring ggtheir gglifetime. D gga ggproperty ggis ggsold ggto ggthe ggfinancial gginstitution ggat gga ggdiscounted ggvalue ggby gga ggborrower ggin ggarrears. gg- ggAnswer ggB 1.2.1 gg- ggDifferent ggforms ggof ggloans A gghire ggpurchase ggagreement ggis ggwhere gga ggconsumer: A ggpurchases gggoods ggnow ggfrom gga ggretailer ggwith ggthe ggaid ggof gga ggloan ggprovided ggby gga ggfinance ggcompany. B ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular ggperiod ggby ggpaying gga ggmonthly ggfee, ggand ggmust ggreturn ggthe gggoods ggto ggthe ggfinance ggcompany ggat ggthe ggend ggof ggthe ggspecified ggtime. C ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular ggperiod ggwith ggthe gggoods ggtransferring ggautomatically ggto ggthe ggconsumer ggat ggthe ggend ggof ggthe ggperiod. D ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular ggperiod ggwith ggthe ggoption ggto ggpurchase ggat ggthe ggend ggof ggthe ggperiod. gg- ggAnswer ggD 1.2.2 gg- ggDifferent ggforms ggof ggloan The ggFinancial ggServices ggand ggPensions ggOmbudsman ggCANNOT ggin ggany ggcircumstances gginvestigate ggcomplaints ggabout gga ggregulated ggfinancial ggservices ggprovider ggreceived ggfrom: A ggan ggindividual ggwho gghas gga ggcomplaint ggrelating ggto gga ggmatter ggwhich ggoccurred ggmore ggthan ggthree ggyears ggago. B gga gglimited ggcompany ggwith gga ggturnover ggunder gg€3 ggmillion.
C ggan ggindividual ggwho gghas ggnot gggone ggthrough ggthe gginternal ggcomplaints ggprocedure ggof ggthe ggfinancial ggservices ggprovider. D gga ggcharity, ggclub ggor ggpartnership. gg- ggAnswer ggC 1.5.3 gg- ggFinancial ggServices ggOmbudsman ggcomplaints ggprocess. Under ggthe ggFamily ggHome ggProtection ggAct, gg1976, ggwhose gginterest ggis ggprimarily ggprotected? A ggA ggnon-owning ggspouse. B ggThe ggmortgage gglender. C ggA ggregistered ggproperty ggowner. D ggThe ggchildren ggof ggthe ggregistered ggproperty ggowner. gg- ggAnswer ggA 1.6.5 gg- ggFamily ggHome ggProtection ggAct, John ggis ggoffered gga gghousing ggloan ggby ggNore ggBank ggwhereby gginterest ggonly ggis ggpayable ggfor ggthe ggfirst ggthree ggyears, ggafter ggwhich ggJohn ggwill gghave ggto ggmake ggcapital ggand gginterest ggpayments. John ggis ggat ggincreased ggrisk ggof ggnegative ggequity ggduring ggthe ggfirst ggthree ggyears ggbecause: A gginterest ggrates ggcould ggrise ggduring ggthis ggperiod. B gginterest ggrates ggcould ggfall ggduring ggthis ggperiod. C ggJohn's ggnet ggincome ggwill ggfall ggat ggthe ggend ggof ggthis ggperiod. D ggno ggcapital ggis ggrepaid ggduring ggthis ggperiod. gg- ggAnswer ggD 2.10.2 gg- ggInterest ggonly Which ggof ggthe ggfollowing ggstatements ggabout ggPension ggMortgages ggare ggaccurate? (i) ggNo ggpayments ggare ggmade ggto ggthe ggpension ggpolicy ggthroughout ggthe ggterm ggof ggthe ggagreement. (ii) ggInterest ggonly ggrepayments ggare ggmade ggto ggthe ggmortgage ggduring ggthe ggterm ggof ggthe ggagreement. (iii) ggThere ggis gga ggrisk ggthat ggthe ggvalue ggof ggthe ggpension ggpolicy ggwill ggnot ggbe ggsufficient ggto ggclear ggthe ggoutstanding ggcapital ggon ggthe ggexpiry ggdate ggof ggthe ggmortgage. A gg(ii) ggonly. B gg(i) ggand gg(ii) ggonly. gg C gg(ii) ggand gg(iii) ggonly. gg D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC 2.10.2 gg- ggInterest ggonly To ggbe ggeligible ggfor gga ggRebuilding ggIreland ggHomeloan:
Which ggof ggthe ggfollowing ggis ggnot ggtypically ggone ggof ggthe ggborrower's ggcovenants ggthat ggappears ggin gga ggmortgage ggdeed? A ggThe ggproperty ggmust ggbe ggkept ggin gggood ggrepair. B ggThe ggproperty ggcan ggbe gglet ggwithout ggconsent. C ggAny ggobligations ggimposed ggby gglocal ggauthorities ggmust ggbe ggcomplied ggwith. D ggThe ggproperty ggmust ggbe ggkept gginsured ggas ggrequired ggby ggthe gglender. gg- ggAnswer ggB 2.4.1.1 ggBorrowers ggCovenants If gginterest ggon ggan ggannuity ggmortgage ggis ggsaid ggto ggbe gg'capitalised' ggthis ggmeans ggthe gginterest: A ggis ggwritten ggoff ggby ggthe gglender. B gghas ggbeen ggrepaid ggby ggthe ggborrower ggin gga ggcash lump ggsum. C ggis ggdeducted ggfrom ggthe ggloan ggoutstanding. gg D ggis ggadded ggto ggthe ggloan ggoutstanding. gg- ggAnswer ggD 2.13.2 gg- ggCompound ggInterest Janice ggwants ggto ggensure ggthat ggher ggmortgage ggwill ggbe ggfully ggrepaid ggat ggthe ggend ggof ggthe ggmortgage ggterm ggwithout gghaving ggto ggpay ggan ggoutstanding ggbalance. Which ggof ggthe ggfollowing ggis ggthe ggmost ggsuitable ggmortgage ggtype ggfor ggher? A ggEndowment ggMortgage. B ggInterest ggOnly ggMortgage. C ggAnnuity ggMortgage. D ggPension ggMortgage. gg- ggAnswer ggC 2.10.1 gg- ggCapital ggand gginterest Which ggof ggthe ggfollowing ggtypes ggof ggorganisation ggare ggcredit gginstitutions? (i) ggBanks. (ii) ggMortgage ggintermediaries. gg (iii) ggDebt ggManagement ggFirms. A gg(i) ggonly. B gg(iii) ggonly. C gg(i) ggand gg(ii) ggonly. gg D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggA 2.3.1 gg- ggCredit ggInstitution Joe ggand ggMaria ggwere ggmarried ggat ggthe ggtime ggof ggJoe's ggdeath. ggIn ggaccordance ggwith ggthe ggSuccession ggAct, gg1965, ggMaria:
A ggis ggautomatically ggentitled ggto ggthe ggentire ggproceeds ggof ggJoe's ggestate ggregardless ggof ggthe ggprovisions ggof ggJoe's ggwill. B gghas ggno gglegal ggright ggshare ggover ggJoe's ggestate. C ggis gglegally ggonly ggentitled ggto ggthe ggshare ggof ggJoe's estate ggleft ggto ggher ggby ggJoe ggin gghis ggwill. D gghas ggan ggautomatic ggright ggto gga ggshare ggin ggJoe's ggestate ggregardless ggof ggthe ggprovisions ggof gghis ggwill. gg- ggAnswer ggD 2.7.4 ggInheritance ggRights Which ggof ggthe ggfollowing ggare ggterms ggof ggthe ggmortgage, ggfound ggin gga ggtypical ggmortgage ggdeed? (i) ggDescription ggof ggthe ggproperty. (ii) ggAmount ggof ggthe ggloan ggand ggterm ggof ggrepayment. (iii) ggInterest ggpenalties ggfor gglate ggpayment. A gg(i) ggand gg(ii) ggonly. gg B gg(i) ggand gg(iii) ggonly. gg C gg(ii) ggand gg(iii) ggonly. gg D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggD 2.4 gg- ggSecurity ggfor gghousing ggloans The gglegal ggcharge ggconfers ggon ggthe gglender ggthe ggright ggto: (i) ggDemand ggimmediate ggrepayment ggof ggthe ggloan ggfrom ggthe ggborrower. (ii) ggTake ggpossession ggand ggexercise ggpower ggof ggsale. (iii) ggAppoint gga ggreceiver ggto ggcollect ggrents. A gg(i) ggonly. B gg(i) ggand gg(iii) ggonly. C gg(ii) ggand gg(iii) ggonly. D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggD 2.4 gg- ggSecurity ggfor gghousing ggloans A ggmortgage ggdeed ggis gga ggdocument ggwhich: A ggallows ggthe ggborrower ggto ggreturn ggthe ggproperty ggto ggthe gglender ggif ggthey ggget gginto ggfinancial ggdifficulty. B gggives ggthe gglender ggautomatic gglegal ggpower ggto ggevict gga ggborrower, ggat ggany ggtime. C ggtransfers ggthe ggownership ggof gga ggproperty ggto gga gglender. D ggtransfers gga gglegal gginterest ggin ggthe ggproperty ggto gga gglender. gg- ggAnswer ggD 2.4 gg- ggLegal ggmortgage
A ggProperty ggRegistration ggAuthority. B ggDepartment ggof ggJustice. C ggDeeds ggAuthority. D ggDepartment ggof ggthe ggEnvironment. gg- ggAnswer ggA 2.6 gg- ggRegistering ggthe ggownership ggof ggproperty. Joe ggand ggMaria gghave ggarranged ggthe ggownership ggof ggtheir ggproperty ggunder ggjoint ggtenancy. ggAs ggjoint ggtenants, ggif ggJoe ggdies: A ggMaria ggtakes ggover ggfull ggownership ggof ggthe ggproperty. B ggJoe's ggshare ggof ggthe ggproperty gggoes ggto gghis ggestate. C ggMaria ggthen ggowns gg50% ggof ggtheir gghome.D ggJoe's ggshare ggof ggthe ggproperty ggtransfers ggto gghis parents. gg- ggAnswer ggA 2.7.2 gg- ggJoint ggtenants The ggMOST ggcommon ggmethod ggof ggpurchasing gga ggprivate ggresidential ggproperty ggis ggby: A ggprivate ggtreaty. B ggcash ggpayment. C ggbuying ggoff ggplans. D ggauction. gg- ggAnswer ggA 2.9.1 gg- ggPrivate ggTreaty Jake ggand ggRose ggare ggfirst ggtime ggbuyers ggand ggare ggbuliding ggtheir ggown gghome, ggwhich gghas gga ggcompletion ggvalue ggof gg€300,000. As gga ggresult ggof ggthe ggHelp ggto ggBuy ggscheme ggthey ggare ggentitled ggto gga ggrefund ggof ggwhat ggamount ggof ggincome ggtax ggand ggDIRT ggpaid ggover ggthe ggpast ggfour ggyears? A gg€6, B gg€10, C gg€15, D gg€20,000 gg- ggAnswer ggC 3.4 ggHelp ggto ggBuy The ggmaximum ggrelievable gginterest ggthresholds ggin gg 2019 ggfor ggJohn ggand ggPatricia, ggmarried ggto ggeach ggother, ggand ggwho ggpurchased ggtheir ggfirst ggproperty ggin gg 2012 ggis: A gg€3, B gg€6, C gg€10, D gg€20,000 gg- ggAnswer ggA
3.2.2.1 ggMaximum ggthresholds ggfor ggrelievable gginterest Ciara ggtook ggout ggher ggfirst ggqualifying gghome ggloan ggin ggSeptember gg2008. ggIn ggMarch gg2012, ggshe ggmoved gghouse ggand ggtook ggout gga ggnew ggqualifying gghome ggloan. All ggthings ggremaining ggthe ggsame, gghow gglong ggwill ggCiara ggpay gga gglower ggmortgage ggrepayment ggdue ggto ggmortgage gginterest ggrelief? A ggCiara ggis ggno gglonger ggentitled ggto ggclaim ggmortgage gginterest ggtax ggrelief. B ggUntil gg 31 ggDecember gg2017. gg C ggUntil gg 31 ggDecember gg2018. gg D ggUntil gg 31 ggDecember gg2020. gg- ggAnswer ggD 3.2.1 gg- ggDetermine ggif gga ggloan ggis gga ggqualifying ggloan Maurice ggqualifies ggfor ggmortgage gginterest ggrelief ggon gghis gghome ggloan. ggHe ggwill ggreceive ggthis ggtax ggrelief ggby ggway ggof gga: A ggdeduction ggagainst gghis gggross ggincome ggfor ggtax ggpurposes. B ggtax ggcredit. C ggreduction ggin gghis ggloan ggrepayments. D ggtax ggrebate. gg- ggAnswer ggC 3.2.4 gg- ggHow ggMortgage ggInterest ggTax ggRelief ggis ggprovided In ggJanuary gg2019, ggJohn ggdied ggand ggleft ggan gginheritance ggof gg€1 ggmillion ggto gghis ggson, ggTom, ggin gghis ggwill. ggAssuming ggTom gghas ggnot ggpreviously ggreceived gga gggift ggor gginheritance ggfrom ggany ggsource, gghow ggmuch ggof ggTom's gginheritance ggis ggliable ggto gginheritance ggtax? A ggTom, ggas ggthe ggbeneficiary, ggis ggexempt ggfrom ggany ggtax ggliability. B gg€320, C gg€680, D gg€1,000,000 gg- ggAnswer ggC 3.3 gg- ggCapital ggAcquisition ggTax ggInheritance In ggrelation ggto gginheritance ggtax, ggwhich ggof ggthe ggfollowing ggstatements ggis ggMOST ggaccurate? A ggWhen ggan gginheritance ggtax ggliability ggarises ggfollowing ggthe ggdeath ggof ggan ggindividual, ggthe ggfull ggbenefit ggreceived ggis ggtaxed. B ggOnly gga ggdeceased's ggspouse ggis ggliable ggto ggpay gginheritance ggtax. C ggWhen ggan gginheritance ggtax ggliability ggarises ggon ggthe ggdeath ggof ggan ggindividual, ggthe ggbenefit ggis ggtaxed ggif ggit ggis ggover gga ggcertain ggthreshold ggand gginherited ggby ggan ggindividual ggother ggthan ggthe ggdeceased's ggspouse ggor ggcivil ggpartner. D ggWhen ggan gginheritance ggtax ggliability ggarises, ggit ggis ggthe ggresponsibility ggof ggthe ggdeceased's ggestate ggto ggpay ggthe ggtax. gg- ggAnswer ggC
Which ggof ggthe ggfollowing ggis ggnot gga gggrounds ggfor ggdeferral ggof ggLocal ggProperty ggTax. A ggIncome ggThreshold. B ggFirst ggTime ggBuyer. C ggPersonal ggInsolvency. D ggPersonal ggRepresentative ggof gga ggdeceased ggliable ggperson. gg- ggAnswer ggB 3.5.2 gg- ggDeferrals In ggrelation ggto ggCapital ggGains, gghow ggmuch, ggif ggany, ggof gga ggtaxable gggain ggmade ggwithin gga ggspecific ggtax ggyear ggis ggexempt ggfrom ggCapital ggGains ggTax? A ggNil. B gg€ C gg€1, D gg€1,270 gg- ggAnswer ggD 3.7.2 gg- ggAccidental ggLandlords Mike ggand ggCollette ggare ggfirst ggtime ggbuyers ggand gghave ggplaced gga ggdeposit ggof gg€10,000 ggto ggbuy ggtheir ggfirst gghome ggwhich ggis ggvalued ggat gg€200,000. When ggthe ggsale ggcloses, ggwhat ggwill ggthe ggstamp ggduty ggbe ggon ggthe ggpurchase? A ggNil. B gg€ C gg€2, D gg€12,000 gg- ggAnswer ggC 3.7.3 gg- ggStamp ggDuty Stamp ggDuty ggon gga ggresidential ggproperty ggvalued ggover gg€1,000,000 ggis ggcharged ggat: A gg0.50% B gg0.75% C gg1% D gg2% gg- ggAnswer ggD 3.7.3 gg- ggStamp ggDuty John ggis ggpurchasing gga ggproperty ggpriced ggon ggthe ggopen ggmarket ggat gg€200,000. ggHowever ggthe ggproperty gghas ggbeen ggvalued ggby ggthe gglender ggat gg€180,000. If ggJohn ggwants ggto ggborrow gg€150,000, ggthe gglender ggwill ggcalculate gghis ggLoan ggto ggValue ggas: A gg75% B gg80% C gg83% D gg90% gg- ggAnswer ggC
4.2.2 gg- ggLoan ggto ggValue gg(LTV) ggratio Rita ggand ggMark ggare ggapplying ggfor gga ggnegative ggequity ggloan ggwith ggBarrow ggBank. ggThe ggBank ggmust ggtake ggthe ggfollowing gginto ggaccount ggwhen ggconsidering ggtheir ggloan ggapplication: (i) ggThe ggCentral ggBank's ggLoan ggto ggValue ggrestrictions. (ii) ggThe ggCentral ggBank's ggLoan ggto ggIncome ggrestrictions. (iii) ggThe ggresults ggof gga ggcreditworthiness ggassessment. A gg(i) ggonly. B gg(iii) ggonly. C gg(ii) ggand gg(iii) ggonly. D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC 4.2 gg- ggAssessing gga ggloan ggapplication Angela gghas ggapplied ggto ggBarrow ggBank ggplc ggfor gga gghousing ggloan ggthat ggoffers gga ggdiscounted ggvariable ggrate ggof gg3.35% ggfor ggsix ggmonths. ggBarrow ggBank's ggcurrent ggvariable ggrate ggis gg3.95% ggper ggannum. What ggis ggthe ggMINIMUM gginterest ggrate ggBarrow ggBank ggis ggrequired ggto gguse, ggunder ggthe ggConsumer ggProtection ggCode, ggwhen ggstress ggtesting ggAngela's ggloan ggapplication? A gg3.35% B gg3.95% C gg5.35% D gg5.95% gg- ggAnswer ggD 4.3.3 gg- ggAffordability/Stress ggTesting John ggapplies ggto ggtwo ggdifferent ggmortgage gglenders ggfor gga gghousing ggloan, ggproviding ggeach ggwith ggthe ggsame gginformation. ggHe ggis ggoffered gga ggmaximum ggloan ggof gg€175,000 ggby ggAnchor ggBank ggand gg€215,000 ggby ggFender ggBank. The ggbanks gghave ggoffered ggdifferent ggmaximum ggloan ggamounts ggto ggJohn ggbecause ggthey ggdiffer ggin ggrelation ggto: (i) gghow ggmuch, ggif ggany, ggof ggJohn's ggannual ggbonus ggthey ggare ggwilling ggto ggtake gginto ggaccount ggas ggregular ggincome. (ii) ggthe ggmortgage ggrate ggthey ggpropose ggto ggcharge ggJohn. (iii) ggthe ggmaximum ggnet ggincome ggratio ggthey ggare ggprepared ggto ggtake gginto ggaccount. A gg(iii) ggonly. B gg(i) ggand gg(iii) ggonly. C gg(ii) ggand gg(iii) ggonly.
4.6 gg- ggRisk/Rewards ggwhen ggchoosing gga ggmortgage ggtype. In ggcalculating ggthe ggAPRC ggof gga gghousing ggloan, ggthe gglender ggMUST ggallow ggfor: A ggmortgage ggprotection ggpremiums ggthe ggborrower ggmay ggbe ggrequired ggto ggpay. B ggall gglegal ggfees ggpaid ggby ggthe ggborrower ggin ggconnection ggwith ggthe ggpurchase ggof ggthe ggproperty. C ggthe ggallowable ggmortgage gginterest ggtax ggrelief. D ggthe ggduration ggfor ggwhich ggrepayments ggare made. gg- ggAnswer ggD 4.5.2 gg- ggAPRC Western ggBank ggis ggconsidering ggextending ggthe ggmaximum ggterm ggof ggits ggfirst ggtime ggbuyer gghousing ggloan, ggfrom gg 30 ggyears ggto gg 35 ggyears. What ggeffect, ggif ggany, ggwill ggthis ggchange gghave ggon ggthe ggCost ggPer ggThousand gg(CPT) ggof ggthe gghousing ggloan? A ggThere ggwill ggbe ggno ggchange. gg B ggIt ggwill ggincrease. C ggIt ggwill ggdecrease. D ggThere ggwill ggbe ggno ggneed ggto ggcalculate gga ggCPT ggas ggthis ggis ggonly gga ggrequirement ggfor ggloans ggwith gga ggterm ggof ggup ggto gg 30 ggyears. gg- ggAnswer ggC 4.3.4 ggLoan ggTerms Patricia ggis ggarranging ggan gginterest ggonly gghousing ggloan ggwith ggBarrow ggBank. ggThe ggloan ggamount ggis gg€200,000 ggover gga gg20-year ggperiod. ggBarrow ggBank's ggstandard ggvariable gginterest ggrate ggis gg4.5% gg(CPT gg€7.14). Calculate ggPatricia's gginterest ggonly ggmortgage ggrepayment ggin ggthe ggfirst ggmonth. A gg€142. B gg€ C gg€ D gg€1,428 gg- ggAnswer ggB 4.5.4 gg- ggCost ggper ggThousand Household ggInsurance ggcovers ggWHICH ggof ggthe ggfollowing ggrisk(s)? (i) ggLegal ggliability. (ii) ggSerious ggillness. (iii) ggHome ggloan ggarrears. A gg(i) ggonly. B gg(ii) ggonly. C gg(iii) ggonly. D gg(i), gg(ii), ggand gg(iii). gg- ggAnswer ggA gg
5.5- ggHousehold ggInsurance In ggrelation ggto gga ggclaim ggon gga gghousehold gginsurance ggpolicy, ggloss ggadjusters ggare: (i) ggappointed ggby ggthe gginsurers ggwhen ggclaims ggare gglarge ggor ggcomplex. (ii) ggrequired ggto ggact ggin ggthe ggbest gginterests ggof ggthe gginsured ggnot ggthe gginsurer. (iii) ggrequired ggto ggtake ggan ggimpartial ggview. A gg(i) ggonly. B gg(i) ggand gg(ii) ggonly. C gg(i) ggand gg(iii) ggonly. D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC gg 5.5.8.5 gg- ggClaims ggProfessionals Andrew ggand ggAlice gghave ggjoined ggSuir ggBank's gggroup ggmortgage ggprotection ggscheme ggand ggarranged gga gglevel ggterm ggpolicy ggfor gg€300,000 ggin ggrespect ggof ggtheir ggjoint ggmortgage. ggAndrew ggdies ggand ggthe ggmortgage ggoutstanding ggis gg€250,000. What ggpayout ggis ggmade ggfrom ggthe gggroup ggmortgage ggprotection ggpolicy? A gg€250,000 ggto ggSuir ggBank, ggand ggany ggbalance ggis ggkept ggby ggthe gginsurer. B gg€250,000 ggto ggthe ggSuir ggBank, gg€25,000 ggto ggAlice ggand gg€25,000 ggis ggkept ggby ggthe gginsurer. C gg€300,000 ggto ggthe ggmortgage gglender, ggwho ggmust ggpay gg€50,000 ggto ggAlice. D gg€300,000 ggto ggthe ggmortgage gglender, ggwho ggmust ggpay ggany ggbalance ggremaining ggafter ggfees ggand ggcharges ggback ggto ggSuir ggBank. gg- ggAnswer ggC gg 5.2.1 gg- ggGroup ggMortgage ggProtection ggCover If gga gggroup ggmortgage ggprotection ggpolicy ggis ggsaid ggNOT ggto ggbe gginterest ggrate ggsensitive, ggthis ggmeans ggthat ggborrowers: A ggpay ggthe ggsame ggmortgage ggprotection ggpremium, ggregardless ggof ggtheir ggmortgage ggsize ggand ggterm. B ggare ggcovered ggfor ggtheir gginitial ggmortgage ggamount ggover ggthe ggfull ggterm ggof ggtheir ggmortgage. C ggwill gghave ggto ggpay gghigher ggmortgage ggprotection ggpremiums ggin ggthe ggfuture, ggif ggmortgage gginterest ggrates ggincrease ggfrom ggtheir ggcurrent gglevels. D ggare ggcovered ggfor ggthe ggprincipal ggoutstanding ggon ggtheir ggmortgage ggat ggdeath, ggregardless ggof ggchanges ggin ggmortgage gginterest ggrates. gg- ggAnswer ggD gg 5.2.1 gg- ggGroup ggMortgage ggProtection ggCover
B gg(i) ggand gg(ii) ggonly. C gg(ii) ggand gg(iii) ggonly. D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggD gg 5.5.3.3 gg- ggExclusions Joanne gghas gginsured ggher gghouse ggunder gga gghousehold gginsurance ggpolicy ggfor gg€350,000. ggShe gghas gga ggclaim ggfor gg€50,000 ggdamage ggto ggher ggproperty, ggat gga ggtime ggwhen ggthe gginsurer ggestimates ggthe ggvalue ggat ggrisk ggunder ggthe ggpolicy ggat gg€700,000. What ggamount, ggif ggany, ggwill ggthe gginsurer ggpay ggout ggin ggrespect ggof ggthe gg€50,000 ggproperty ggdamage ggclaim? A ggNil. B gg€25, C gg€35, D gg€50,000 gg- ggAnswer ggB gg 5.5.8.3 gg- ggAverage ggClause For gghow ggmany ggyears ggafter gga ggloan ggis ggclosed, ggwill ggthe ggIrish ggCredit ggBureau gg(ICB) ggretain gginformation ggregarding ggthe ggperformance ggof ggthe ggloan? A gg 1 ggyear. B gg 2 ggyears. C gg 5 ggyears. D gg 6 ggyears. gg- ggAnswer ggC gg 6.17 gg- ggIrish ggCredit ggBureau Factfinding ggis: A ggthe ggprocess ggof ggdetermining gga ggclient's ggneeds prior ggto ggoffering gga ggservice. B ggwhere gga ggmortgage ggagent ggsets ggout ggthe ggfacts ggunder ggwhich ggit ggprovides gga ggservice. C ggan ggoutline ggof gghow gga gglender ggoperates ggits ggcomplaints ggprocedure. D gga gglender's ggenquiries ggto ggan ggemployer ggregarding gga ggborrowers ggcurrent ggsalary. gg- ggAnswer ggA gg 6.5 gg- ggKnowing ggyour ggcustomer ggFactfinding. Sandra, gga ggself-employed ggfirst ggtime ggbuyer, ggis ggapplying ggto ggBarrow ggBank ggfor gga gghousing ggloan. ggWhich ggof ggthe ggfollowing ggdocumentation ggis ggshe gglikely ggto ggbe ggasked ggto ggprovide ggto ggBarrow ggBank? A ggProjected ggincome ggfor ggthe ggnext ggthree ggyears. B ggP60. C ggThe gglast ggthree ggyears' ggaudited ggaccounts.
D ggAn ggup-to-date ggmortgage ggstatement. gg- ggAnswer ggC gg 6.5.3 gg- ggCompiling ggsupporting ggdocumentation Andy, gga ggfirst ggtime ggbuyer ggand ggemployee ggof ggMakeIT ggServices, ggapplies ggto ggDelta ggBank ggfor gga gghousing ggloan. ggWhich ggof ggthe ggfollowing ggdocumentation ggis gghe gglikely ggto ggbe ggasked ggto ggprovide ggto ggDelta ggBank? A ggProjected ggincome ggfor ggthe ggnext ggthree ggyears. gg B ggP60. C ggA ggrevenue ggtax ggclearance ggcertificate. D ggAn ggup-to-date ggmortgage ggstatement. gg- ggAnswer ggB gg 6.5.3 gg- ggCompiling ggsupporting ggdocumentation When gga ggmortgage ggcredit ggintermediary ggis ggproviding gga ggterms ggof ggbusiness ggto gga ggnew ggconsumer, ggthe ggdocument ggMUST gginclude: (i) ggthe ggregulatory ggstatus ggof ggthe ggmortgage ggcredit ggintermediary. (ii) gga gggeneral ggstatement ggof ggcharges ggimposed ggdirectly ggfor ggits ggservices. (iii) ggthe ggagent's ggVAT ggnumber. A gg(i) ggonly. B gg(i) ggand gg(ii) ggonly. C gg(i) ggand gg(iii) ggonly. D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggB gg 6.4 gg- ggProviding ggterms ggof ggbusiness During ggan gginterview ggfor gga ggmortgage, ggHelen ggrefuses ggto ggprovide gginformation ggsought ggby ggMarley ggMortgage ggBrokers ggin ggcompliance ggwith ggthe ggConsumer ggProtection ggCode. What ggaction ggMUST ggMarley ggMortgage ggBrokers ggnow ggtake? A ggInform ggHelen ggthat ggthey ggdo ggnot gghave ggthe ggrelevant gginformation ggnecessary ggto ggassess ggsuitability ggfor gga ggproduct ggand ggthey ggcannot ggoffer gga ggservice ggto ggher. B ggRefer ggthe ggmatter ggto ggsenior ggmanagement ggof ggMarley ggMortgage ggBrokers. C ggObtain gga ggwaiver ggletter ggfrom ggHelen ggwaiving ggher ggrights ggunder ggthe ggCode. D ggNote ggthe ggrefusal ggon ggfile, ggreport ggthe ggmatter ggto ggthe ggMoney ggLaundering ggOfficer, ggand ggproceed ggwith ggthe ggmortgage ggapplication. gg- ggAnswer ggA gg 6.5.1 gg- ggConsumer ggProtection ggCode Under ggCentral ggBank ggrequirements ggif gga ggvaluation ggof gga ggproperty ggwas ggcarried ggout ggfive ggmonths ggprior ggto ggthe ggdrawdown ggof gga gghousing ggloan: A ggthe ggloan ggagreement ggis ggnull ggand ggvoid. B ggthe gglender ggcan ggimpose gga ggnon-drawdown ggfee
6.8.2 gg- ggReason ggWhy ggStatement Which ggof ggthe ggfollowing ggstatements ggis ggtrue ggregarding ggcredit ggagreements ggand ggtheir ggreporting ggon ggthe ggCentral ggCredit ggRegister? A ggA ggsearch ggmust ggbe ggcompleted ggon ggthe ggCentral ggCredit ggRegister ggwhen ggMaria ggapplies ggfor gga ggpersonal ggloan ggof gg€1,000. B ggTom gglives ggin ggthe ggUK ggand gghas ggapplied ggfor gga ggCredit ggCard ggIn ggBCD ggBank, gga ggBelgian ggbank. ggBCD ggBank ggmust ggcheck ggTom's ggprofile ggon ggthe ggCentral ggCredit ggRegister. C ggBrianna gghas gga ggpersonal ggloan ggof gg€800 ggwith ggDelta ggBank, ggand ggDelta ggBank ggmust ggsubmit gginformation ggon ggthis ggloan ggto ggthe ggCentral ggCredit ggRegister. D ggRuby's ggarrears ggon ggher ggelectricity ggbill ggare ggreported ggto ggthe ggCentral ggCredit ggRegister. gg- ggAnswer ggC gg 6.18.2 gg- ggLegal ggObligations A ggmortgage ggloan ggoffer ggpack ggmust ggcontain gginformation ggon ggwhich ggof ggthe ggfollowing? (i) ggDetails ggon ggthe ggeffect ggto ggthe ggmonthly ggrepayment ggof gga gg1% ggincrease ggin gginterest ggrates ggin ggthe ggfirst ggyear. (ii) ggImpact ggof ggthe gginterest ggrate ggstress ggtest. (iii) ggEuropean ggStandardised ggInformation ggSHeet gg(ESIS). A gg(ii) ggonly. B gg(i) ggand gg(ii) ggonly. gg C gg(ii) ggand gg(iii) ggonly. gg D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggD gg 6.14.2 gg- ggThe ggloan ggoffer Under ggthe ggEuropean ggUnion gg(Consumer ggMortgage ggCredit ggAgreements) ggRegulations, gg2016, ggwhat ggis ggthe ggcooling ggoff ggperiod ggthat gghas ggbeen ggadopted ggin ggIreland ggfor ggconsumer gghousing ggloans gggoverned ggby ggthe ggregulations? A gg 7 ggdays B gg 14 ggdays C gg 21 ggdays D gg 30 ggdays gg- ggAnswer ggD gg 6.14.2.3 ggEuropean ggStandardised ggInformation ggSheet gg(ESIS)
First ggExtra ggBank ggoffers ggJohn gga ggserious ggillness ggbenefit, ggat ggan ggadditional ggcost, ggas ggan ggoption ggon gga gglife ggpolicy gghe ggis ggtaking ggout ggrelating ggto gghis ggnew ggmortgage ggloan. On ggoffering ggthe ggbenefit, ggFirst ggExtra ggBank ggMUST gg: A ggshow ggJohn ggthe ggsavings ggbenefit ggif gghe ggopts ggfor ggthis ggproduct. B gginclude ggon ggthe ggmortgage ggapplication ggform gga ggtext ggbox ggfor ggJohn ggto ggtick ggindicating ggthat ggthe gginsurance ggis ggoptional. C ggoffer ggJohn gga gg60-day ggcooling ggoff ggperiod. D gginclude ggon ggthe ggmortgage ggapplication ggform gga ggtext ggbox ggfor ggJohn ggto ggtick ggindicating ggthat gghe ggwants ggto ggtake ggout ggthis ggoptional ggbenefit. gg- ggAnswer ggD gg 6.12.4 ggSelling ggoptional gginsurance ggbenefits James, gga ggsolicitor, ggduring ggthe ggconveyancing ggprocess ggis ggrequired ggto ggconfirm ggthat gga ggproperty gghas gggood ggmarketable ggtitle. ggWhat ggis ggthe ggname ggof ggthe ggdocument gghe ggwill gguse? A ggA ggmemorial. B ggThe ggtitle ggdeed. C ggA ggcertificate ggof ggtitle. D ggA ggfolio. gg- ggAnswer ggC gg 6.15.2 ggTitle ggDocuments If ggan ggindividual ggwishes ggto ggset ggup ggas gga ggmortgage ggintermediary ggin ggIreland, ggthey ggmust ggbe ggauthorised ggby ggthe: A ggNational ggConsumer ggAgency. B ggFinancial ggServices ggOmbudsman. C ggCentral ggBank ggof ggIreland. D ggBanking ggand ggPayments ggFederation ggIreland. gg- ggAnswer ggC gg 6.1.1 ggMortgage ggIntermediaries Susan ggis gga ggtied ggmortgage ggbranch ggagent ggfor ggHome ggLenders ggPlc gg(a ggcreditor). ggIf ggSusan ggmisleads gga ggclient ggin ggrespect ggof ggany ggmatter ggrelating ggto gga gghousing ggloan, ggwho ggis gglegally ggresponsible ggfor ggthe ggmis-selling? A ggHome ggLenders ggPlc ggand ggSusan ggequally. B ggThe ggCentral ggBank ggof ggIreland ggbecause ggthey authorised ggSusan ggas gga ggtied ggagent. C ggHome ggLenders ggPlc. D ggIt ggis ggsolely ggSusan's ggresponsibility. gg- ggAnswer ggC gg 6.1.3 ggDisclosure ggof ggtied ggstatus
