CeMAP·ModuleAMA
AMA: Advanced Mortgage Advice (CeMAP Diploma)
The CeMAP Diploma is the Level 4 qualification that sits above CeMAP. It is awarded by the London Institute of Banking & Finance (LIBF), it is registered with Ofqual, and it is made up of CeMAP plus one further unit, Advanced Mortgage Advice (AMA). If you already hold CeMAP or an equivalent Level 3 mortgage qualification, AMA is the only unit you need to take. AMA is assessed in two parts. Part A is a 90-minute exam of 50 multiple-choice questions with a 70% pass mark, and that is what we cover here, across all 16 of its learning outcomes: the house-buying process, the economic and regulatory context, property defects, valuations and surveys, borrower types, ownership and legislation, MCOB and the Mortgage Credit Directive, additional security, fees and illustrations, self-build finance, second properties, conforming and non-standard lending, protection and state benefits, raising additional funds, and arrears and insolvency. Part B is coursework on gathering client information and formulating advice. Practice questions cannot prepare you for coursework, so we do not cover Part B.
What’s in it.
1 unit- Unit 01
AMA: Advanced Mortgage Advice
Access: Premium727 questions · 16 topics
Sample questions
3 of manyA few questions from this module, with the answer and a full explanation. The complete bank is available when you start practising.
A client cannot decide whether to describe their project as self-build or custom build on their mortgage application, since they are procuring a structural kit from a package company but personally managing the groundworks and finishing trades on land they own outright. Evaluate why classifying this project accurately matters beyond terminology.
- Lenders treat all owner-occupied construction projects identically regardless of management structure.
- The classification affects the lending and warranty route the lender applies.Correct answer
- Only custom build projects require a structural warranty or Professional Consultant's Certificate to be arranged.
- Self-build projects are automatically classified as custom build once any package company is involved.
ExplanationLenders assess self-build and custom build applications differently because the risk profile differs: a self-managing client is assessed for construction and coordination risk in a way a custom build buyer typically is not, which shapes the warranty route the lender will accept, an insurance-backed structural warranty or a Professional Consultant's Certificate. Key takeaway: accurate classification drives the lender's risk and warranty assessment, not just paperwork.
Explain why a smaller lender without a large retail deposit base would struggle to compete directly in the conforming market on headline rate.
- Because retail deposit funding has no bearing on a lender's headline rate.
- Its cost of funds is likely higher, making it hard to match conforming lenders' rates.Correct answer
- Because a smaller lender's underwriting must always be manual regardless of its funding source.
- Because smaller lenders are banned from publishing a rate card under MCOB.
ExplanationHeadline rate competition in the conforming market is sustained by low funding costs and high volumes; a smaller lender without a comparable retail deposit base typically funds more expensively through wholesale markets, making it structurally harder to match the largest lenders' rates while remaining profitable at volume. Key takeaway: competing on price in the conforming market requires the funding cost advantage that scale and deposit-taking provide.
Two neighbouring properties sit in the same mapped flood-risk area: one built in 2005, the other in 2015. Both clients are shopping for buildings insurance and are confused why their quotes differ so sharply. Assess the adviser's explanation.
- The 2005 build qualifies for Flood Re; the 2015 build, post-2009, does notCorrect answer
- The difference reflects construction quality, not build date
- The 2015 property should be cheaper, since new-builds are inherently flood-resistant
- Neither property qualifies, since Flood Re only covers commercial risk
ExplanationFlood Re's eligibility turns on build date, not location, construction quality, or perceived flood resilience: pre-2009 residential properties can access Flood Re-subsidised pricing, so the 2005 property should see a more affordable premium, while the 2015 property, built after the 2009 cut-off, is excluded and faces a higher premium or a specialist insurer despite sitting in the identical flood-risk area.
Frequently asked questions
7 questionsWhat is the CeMAP Diploma?
The CeMAP Diploma is a Level 4 qualification from the London Institute of Banking & Finance (LIBF), registered with Ofqual. It consists of the Level 3 CeMAP qualification plus one Level 4 unit, Advanced Mortgage Advice (AMA). It is designed for mortgage advisers who want to go beyond the Level 3 requirement the FCA sets for giving regulated mortgage advice, and LIBF names the Diploma for Financial Advisers (DipFA) as the progression route after it.
What is AMA?
Advanced Mortgage Advice (AMA) is the single unit that turns CeMAP into the CeMAP Diploma. It is worth 26 credits and LIBF estimates 219 hours of study. It covers the same territory as CeMAP Module 2 but at Level 4, so the exam expects you to analyse, evaluate and compare rather than recall. Topics include property defects and surveys, borrower types, ownership and tax, MCOB and the Mortgage Credit Directive, additional security, fees and mortgage illustrations, self-build, second properties, non-standard lending, protection, raising further funds, and arrears and insolvency.
Do I need CeMAP before I can take AMA?
In practice, yes. The CeMAP Diploma has no formal entry requirements because CeMAP is its first part, but if you already hold CeMAP or an equivalent Level 3 mortgage qualification you can register for AMA alone and complete the Diploma by passing that one unit.
How is the AMA unit assessed?
In two parts. Part A is an electronic exam of 50 multiple-choice questions in 90 minutes with a pass mark of 70%, sat online through LIBF's Brightspace platform with remote invigilation, so there is no exam centre to book. Part B is coursework marked out of 100 (85 marks for content and 15 for communication) with a pass mark of 50%. You need to pass both parts, and the result is Pass or Fail with no Merit or Distinction.
Does GoCeMAP cover the Part B coursework?
No. Our practice questions cover Part A, the 50-question multiple-choice exam, which tests learning outcomes 1 to 16. Part B is a written piece of coursework on gathering client information and formulating suitable advice, which is learning outcomes 17 and 18. Multiple-choice practice is the wrong tool for that, so we do not claim to prepare you for it.
Is the CeMAP Diploma a regulated qualification?
Yes. It is on the Ofqual register as the LIBF Level 4 CeMAP Diploma (qualification number 603/0515/0), assessed by multiple-choice examination and coursework and graded Pass or Fail. That puts it in the same category as CeMAP and CeRER.
Does my subscription cover the CeMAP Diploma?
Yes. The AMA unit is included in the same £9.99 per month subscription as the CeMAP, CeRER and CPSP content, at no extra cost.