CeMAP Module 2: Mortgage Practice Topics Breakdown
What Does CeMAP Module 2 Cover?
CeMAP Module 2 is the heart of your mortgage adviser qualification. While Module 1 focuses on regulation and the broader financial services landscape, Module 2 dives into the practical knowledge you will use every day as a mortgage adviser — from understanding how mortgages work legally and practically, through to the products available and what happens after completion.
Module 2 is the largest of the three CeMAP modules, covering 24 topics spread across two units: MRT1 and MRT2. The exam consists of 100 multiple-choice questions and you need a score of 70% or above to pass. Many candidates find Module 2 more engaging than Module 1 because the content is directly relevant to the work of a mortgage adviser, but the sheer volume of material means you need a structured approach to your revision.
MRT1: Mortgage Law, Practice and Application (15 Topics)
MRT1 is the larger of the two units, covering 15 topics that span the legal, regulatory, and practical aspects of mortgage advice. Here is what you need to know about each one.
1. Legal and Regulatory Framework of Mortgages
This topic sets the scene by covering the laws and regulations that govern mortgage lending in the UK. You will study the key pieces of legislation, the role of the Financial Conduct Authority (FCA), and how regulation protects consumers throughout the mortgage process.
2. The House Buying Process
A step-by-step overview of how buying a property works in England, Wales, Scotland, and Northern Ireland. Understanding the differences between these jurisdictions is important — exam questions often test your knowledge of the distinct processes.
3. FCA Mortgage Conduct Rules (MCOB)
MCOB (Mortgages and Home Finance: Conduct of Business) is the FCA's detailed rulebook for mortgage firms and advisers. This topic covers the key MCOB requirements, including disclosure, advice standards, and responsible lending obligations.
4. Responsibilities of Mortgage Advisers
What does an adviser actually do? This topic covers the duty of care owed to clients, the difference between advice and information, and the standards of competence and ethical behaviour expected of mortgage professionals.
5. Lender Assessment of Applicants
Lenders use a range of criteria to assess mortgage applications. You will study income verification, credit scoring, affordability calculations, and how lenders evaluate different types of applicants including employed, self-employed, and contract workers.
6. Property Valuation and Surveys
Understanding the different types of property valuation and survey — from basic mortgage valuations to full structural surveys — is essential. This topic also covers how valuers assess property and the implications for lending decisions.
7. Property Defects
This topic examines common property defects that can affect mortgage lending, including structural issues, subsidence, Japanese knotweed, and other problems that may cause a lender to decline an application or impose conditions.
8. Borrower Types
Not all mortgage applicants are the same. This topic covers the different categories of borrower — first-time buyers, home movers, remortgagers, buy-to-let investors, and shared ownership purchasers — and the specific considerations for each.
9. Mortgage Applications and Processing
The nuts and bolts of submitting and processing a mortgage application. You will study the documentation required, the stages an application goes through, and common reasons for delays or declines.
10. Land Law and Property Ownership
A foundational legal topic covering freehold and leasehold ownership, commonhold, and the legal principles underpinning property ownership in the UK. Understanding the difference between legal and equitable interests is particularly important.
11. Conveyancing Process
Conveyancing is the legal process of transferring property ownership. This topic covers the roles of solicitors and licensed conveyancers, the stages of conveyancing, and the searches and checks carried out before completion.
12. Professional Parties Involved in Transactions
A mortgage transaction involves multiple professionals — solicitors, surveyors, estate agents, mortgage brokers, and lenders. This topic clarifies each party's role and responsibilities throughout the process.
13. Affordability Assessments
Closely related to lender assessment, this topic focuses specifically on how affordability is calculated. You will study income multiples, stress testing, expenditure analysis, and how affordability rules have evolved following the Mortgage Market Review (MMR).
14. Regulatory Requirements for Mortgage Advice
This topic covers the specific regulatory requirements that apply when giving mortgage advice, including the requirement to assess suitability, the Initial Disclosure Document (IDD), and the European Standardised Information Sheet (ESIS).
15. Record-Keeping and Documentation
Proper record-keeping is a regulatory requirement and a practical necessity. This topic covers what records must be maintained, how long they should be kept, and the consequences of poor documentation.
MRT2: Mortgage Products and Post-Completion (9 Topics)
MRT2 is smaller but no less important. These nine topics cover the products you will recommend to clients and what happens after the mortgage completes.
1. Repayment Methods
The two primary methods of repaying a mortgage — capital and interest (repayment) and interest-only — along with their advantages, disadvantages, and suitability for different client circumstances.
2. Interest Rate Options
Fixed rates, variable rates, tracker rates, discounted rates, capped rates, and offset mortgages. Understanding how each option works and when it might be suitable is fundamental to giving good mortgage advice.
3. Mortgage Product Types
Beyond interest rate options, this topic covers the broader range of mortgage products available, including standard residential mortgages, buy-to-let, shared ownership, Help to Buy (where still available), and right-to-buy mortgages.
4. Specialist Lending
Not every applicant fits the standard lending criteria. This topic covers adverse credit mortgages, self-build, bridging finance, second charge lending, and other specialist products designed for non-standard situations.
5. Fees and Charges
Mortgages come with a range of fees — arrangement fees, valuation fees, early repayment charges, and more. Understanding what these fees are and how they affect the total cost of borrowing is essential for advising clients properly.
6. Arrears Management
When borrowers fall behind on payments, there is a structured process that lenders must follow. This topic covers pre-arrears contact, forbearance measures, payment holidays, and the regulatory requirements around treating customers fairly when they are in financial difficulty.
7. Legal Rights of Lenders
Lenders have specific legal rights when a borrower defaults on their mortgage. This topic covers the power of sale, the right to possession, and other remedies available to lenders under mortgage law.
8. Repossession Procedures
Closely linked to the previous topic, this covers the step-by-step process of repossession — from the initial arrears through court proceedings, possession orders, and the eventual sale of the property. Understanding the borrower's rights throughout this process is heavily tested.
9. Post-Completion Matters
What happens after the mortgage completes? This topic covers ongoing obligations, further advances, porting, product transfers, and remortgaging — the lifecycle of a mortgage from completion onwards.
Study Strategies for Module 2
Given that Module 2 has 24 topics — more than any other CeMAP module — a structured study plan is essential. Here are some practical tips.
Break It Into Manageable Chunks
Rather than trying to tackle all 24 topics at once, divide your study into blocks. A sensible approach is to work through MRT1 topics 1-8 first, then 9-15, and finally the nine MRT2 topics. Give yourself at least two days per topic for initial study, plus time for revision.
Use the Practical Nature to Your Advantage
Module 2 content is more tangible than Module 1's regulatory theory. When you study the conveyancing process or property defects, relate it to real situations. If you know someone who has recently bought a property, talk to them about their experience — it will make the material stick.
Prioritise High-Weight Topics
Some topics carry more weight in the exam than others. MCOB rules, affordability assessments, and mortgage products tend to feature heavily. Make sure you are especially confident in these areas.
Practise With Exam-Style Questions
The best way to consolidate your knowledge is through regular practice with multiple-choice questions. This helps you identify weak areas, get comfortable with how questions are worded, and build the speed you need to complete 100 questions in the allotted time.
Do Not Neglect MRT2
It is tempting to spend most of your time on MRT1 because it has more topics, but MRT2 topics like arrears management and repossession procedures are frequently tested and often catch candidates out.
Ready to Start Practising?
Module 2 is where your mortgage knowledge really comes together. With 24 topics to cover, consistent practice is the key to success. Unlock all Module 2 practice questions and test your knowledge across every MRT1 and MRT2 topic before exam day.