Revalidation Test Two 2022

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* 1. Adviser name?

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* 2. How long do you have to issue the MRWL after submitting the mortgage application?

5 working days

As long as you like

10 working days

15 working days

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* 3. The product you are recommending is 3rd on the Mortgage Brain sourcing list. Which of the following do you need to include in your recommendation?

Only the details of what you are recommending and why.

An explanation of why you are not recommending any of the cheaper products.

Explain there are cheaper products but do not elaborate.

Attach a copy of the sourcing list to the MRWL for your clients' reference

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* 4. Your clients tell you they are happy to pay the ERC on their existing mortgage in order to take out a new 5 year fixed rate. Which of the following do you need to include in your MRWL?

Recommend paying the ERC because it's the client's preference to do so.

Recommend they do not pay it as it's never financially beneficial to do so.

Calculate whether it's financially better to pay the charge or not, then explain this in your letter.

As per c, but include the calculation in your letter, then record you are recommending paying as it was your client's priority to fix their rate for 5 years.

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* 5. Your client is paying off credit card debts from the sale proceeds of their property when they move house. What documents do you need to obtain?

None.

A credit report as it will show headline figures.

Statements of all to confirm amounts and interest rates being charged.

Advise them they cannot pay off any that are on 0% interest or are under £500.

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* 6. You are recommending a residential interest-only mortgage for a 35-year-old client, what should you do?

Not proceed as they should have C & I

Provide a comparable repayment quote.

Provide a comparable repayment quote and explain in the MRWL why interest only is more suitable.

Tell the client you will switch them to C & I when theiir fixed rate ends.

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* 7. Your client is a 48-year-old roofer who has asked for a 25-year term for his mortgage in order to keep costs down. He tells you he plans to keep working full time to age. Which of the following is correct?

As the lender you are recommending will lend to 75 it's ok to go ahead without any further justification.

You should not recommend a mortgage term that will take the client beyond his state retirement age.

Discuss with the client how realistic it is to continue full time to age 75 in his current occupation.

tell the client the plan is unrealistic and he will need to reduce the term.

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* 8. You have recommended a client takes out full life and critical illness cover for their mortgage. The client has accepted your advice for the life cover but has chosen a lower figure for critical illness. How should you record this in the needs analysis?

The needs analysis should always match the client's chosen solution.

The needs analysis should always match your recommendation.

Either of these options is fine.

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* 9. Your client wants some critical illness cover, but you have excluded Guardian for this. How should you document this in your PRWL?

You should explain you would normally recommend Guardian and why, then document the reason why the product you are recommending meets the clients needs better.

Use the template and enter the insurer's name using the stock wording for your recommendation.

Recommend Guardian and record the client partially accepted your advice and chose another provider.

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* 10. Your client wants some income protection, and the cost is not an issue - should you?

Recommend full-term cover, index-linked, to the end date of the client's mortgage.

Recommend 2 year benefit period level cover to the client's anticipated retirement age because it is the cheapest cover available.

Recommend full-term cover, index-linked, to the client's anticipated retirement age.

Recommend AS cover, and then income protection with a 12 month deferred period for the client.

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* 11. Which of the following risk areas do we need to provide additional justification for our recommendations?

Debt consolidation.

Residential interest only.

Lending into retirement.

All of the above

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* 12. True or false - you are arranging a re-mortgage for a client you have dealt with before. When you create a new sale the breakdown of expenditure is pulled through complete from the previous sale.

True

False

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* 13. Your client has an existing critical illness policy that does not cover their new mortgage, and you want to recommend replacing it with a new one from Guardian. However, your client would prefer a different provider. Do you:-

Request a CI Expert report comparing the existing product against Guardian only.

Request a CI Expert report comparing the existing product against their chosen provider.

Request a CI Expert report comparing the existing product against both products.

As the client has chosen the product there is no need to get a CI Expert comparison

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* 14. You have just seen clients you arranged a mortgage for 2 years ago as their rate is coming to an end, and you have concluded a product transfer is the most appropriate. They are both in the same jobs, but since you last met, they have had a child, and one is currently on maternity leave. What documents do you need to obtain to support your recommendation?

As they are in the same jobs you only need to obtain one months’ bank statements showing income and expenditure for both.

Regardless of whether they are existing clients or not, you always need to get 3 months' payslips and bank statements.

As the clients’ circumstances have changed you need to obtain 3 months’ payslips and bank statements.

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* 15. True or false - you are arranging a re-mortgage for a client you have dealt with before. When you create a new sale the clients’ debts from the previous sale are all pulled through, and therefore need deleting or updating.

True

False

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* 16. When dealing with a client who is potentially vulnerable, what else is correct on The Key, after you’ve ticked the “yes” box for vulnerability?

Include details of their vulnerability in the “more” box next to “yes”

Include details of what action you have taken in the “more” box next to “yes”

Don’t include your comments in the normal Notes section of the Fact Find

All of the above