Have You Got The Mortgage Factor

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  • 1/10 Questions

    Just to help you get your score upWho killed Heather Trott in Eastenders 

    • Wellard, (or is that just another name for a Mitchell )
    • Steve Owen
    • Ben Mitchell
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About This Quiz

Explore the essentials of mortgages with the 'Have You Got The Mortgage Factor' quiz. Learn about interest rates, mortgage terms, APR, property valuation, and repayment responsibilities. Ideal for anyone interested in home financing or pursuing financial literacy.

Have You Got The Mortgage Factor - Quiz

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  • 2. 

    With a capped rate mortgage what happens to the interest rate

    • The mortgage rate goes up and down as interest rates change

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

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

    Correct Answer
    A. 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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  • 3. 

    Which of the following would stop you from getting a mortgage

    • Having a county court judgement

    • You had a house reposessed 6 year ago

    • Not having the sufficient income

    Correct Answer
    A. 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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  • 4. 

    What is the most common reason for remortgaging

    • To borrow money for an extension

    • To get a lower interest rate

    • To pay for school fees

    Correct Answer
    A. 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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  • 5. 

    APR stands for

    • Annual percentage rate

    • Annual penalty rate

    • Annual performance rate

    Correct Answer
    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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  • 6. 

    Exchanging contracts on a mortgage means

    • You make an appointment with solicitor and swap pieces of paper

    • You are legally bound to proceed and complete the purchase

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

    Correct Answer
    A. 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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  • 7. 

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

    • David Dickinson

    • A surveyor

    • An auctioneer

    Correct Answer
    A. 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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  • 8. 

    Why would you choose an independent mortgage adviser

    • It does not make any difference who you choose

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

    • All banks have the same deals anyway

    Correct Answer
    A. 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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  • 9. 

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

    • The lender

    • The borrower

    • The solicitor

    Correct Answer
    A. 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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  • 10. 

    The minimum term you can take out a mortgage for is

    • Five year

    • One Year

    • Seven year

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

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Quiz Review Timeline (Updated): Mar 20, 2023 +

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