# Have You Got The Mortgage Factor

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Quizzes Created: 1 | Total Attempts: 2,136
Questions: 10 | Attempts: 2,136

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• 1.

### With a capped rate mortgage what happens to the interest rate

• A.

The mortgage rate goes up and down as interest rates change

• B.

Its a mortgage product sold by an adviser that wears a cap

• C.

The interest rate goes up and down but has a ceiling that it cannot go above

C. The interest rate goes up and down but has a ceiling that it cannot go above
Explanation
With a capped rate mortgage you take advantage of interest rates falling but with the security the rate will not go above a certain level. hence the term cap.

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• 2.

### The minimum term you can take out a mortgage for is

• A.

Five year

• B.

One Year

• C.

Seven year

B. One Year
Explanation
All lenders vary, but it is possible to get a one year term from certain lenders.

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• 3.

### APR stands for

• A.

Annual percentage rate

• B.

Annual penalty rate

• C.

Annual performance rate

A. Annual percentage rate
Explanation
Annual percentage rate (APR) describes the interest rate for the whole year, showing the full cost of borrowing.

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• 4.

### Who will a lender send to value the property you intend to purchase

• A.

David Dickinson

• B.

A surveyor

• C.

An auctioneer

B. A surveyor
Explanation
Mortgage valuations are carried out by the lenders surveyor to ensure property is safe to lend on, other more detailed reports are available for your benefit, you would need to pay a higher fee for these.

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• 5.

### Whose responsibility is it to ensure an interest only mortgage is repaid at the end of the term

• A.

The lender

• B.

The borrower

• C.

The solicitor

B. The borrower
Explanation
Its the borrowers responsibility and most lenders now require sight of a repayment vehicle if you take out an interest only mortgage.

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• 6.

### What is the most common reason for remortgaging

• A.

To borrow money for an extension

• B.

To get a lower interest rate

• C.

To pay for school fees

B. To get a lower interest rate
Explanation
All of these reasons are sometimes used to remortgage but obtaining a better interest rate is the most common.

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• 7.

### Exchanging contracts on a mortgage means

• A.

You make an appointment with solicitor and swap pieces of paper

• B.

You are legally bound to proceed and complete the purchase

• C.

You need to bring your work contract to prove you have a job

B. You are legally bound to proceed and complete the purchase
Explanation
Once you have exchanged contracts a date or time is set for completing your purchase.

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• 8.

### Which of the following would stop you from getting a mortgage

• A.

Having a county court judgement

• B.

You had a house reposessed 6 year ago

• C.

Not having the sufficient income

C. Not having the sufficient income
Explanation
Lenders now have a responsibility to ensure after expenditure you have enough disposable income to afford your loan.

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• 9.

### Why would you choose an independent mortgage adviser

• A.

It does not make any difference who you choose

• B.

Because you get the best deal available for you not the best a lender has to offer

• C.

All banks have the same deals anyway

B. Because you get the best deal available for you not the best a lender has to offer
Explanation
Not all brokers or estate agents use the whole of the market to find deals, this is why it is important you use companies who are independent.

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• 10.

• A.

Wellard, (or is that just another name for a Mitchell )

• B.

Steve Owen

• C.

Ben Mitchell

C. Ben Mitchell
Explanation
Ben done it, we think there have now been five different Ben Mitchell's, are we wrong ?

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• Current Version
• Mar 20, 2023
Quiz Edited by
ProProfs Editorial Team
• May 19, 2015
Quiz Created by
Assured