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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.

Questions
747
Units
1
Topics
16

What’s in it.

1 unit

Sample questions

3 of many

A few questions from this module, with the answer and a full explanation. The complete bank is available when you start practising.

  1. 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.
    Explanation

    Headline 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.

  2. A property built in 2003 sits in a mapped flood-risk area and has always qualified for Flood Re-supported buildings insurance. In 2019 the owner undertook a substantial extension, more than doubling the property's floor area, and the property was reassessed for council tax and EPC purposes at that time. Assess whether the property still qualifies for Flood Re support today.

    • Yes: Flood Re eligibility turns on the original build date, not on later extension or reassessment work.
      Correct answer
    • No: the 2019 extension counts as a new build for Flood Re purposes, taking it outside the scheme.
    • No: a council tax or EPC reassessment automatically triggers a fresh Flood Re eligibility review.
    • Yes, but only for the original footprint, with the extended area separately excluded from cover.
    Explanation

    Flood Re's eligibility test is fixed at the property's original construction date: built before 2009, it qualifies; built from 2009 onwards, it does not. A later extension, renovation or reassessment for council tax or EPC purposes does not create a new build date and does not trigger a fresh eligibility test, and there is no mechanism that excludes only the extended part of a property from cover while keeping the original footprint eligible. This goes beyond the basic build-date comparison: Flood Re eligibility, once established, is not disturbed by what happens to the property afterwards. Key takeaway: Flood Re eligibility is fixed at original construction and is not revisited by later works or reassessments.

  3. A defect has an accurately quoted repair cost, but the quote covers only the visible extent of extensive dry rot in load-bearing timber, with the full spread undetermined. Assess why a quoted figure does not, by itself, satisfy the retention criteria here.

    • It does not, because the seller, not the lender, decides between a retention and a decline.
    • It does, because decline is reserved only for defects with no repair cost available at all.
    • It does not, because a retention can only be used for cosmetic defects.
    • The quoted figure does not bound the defect, because its full extent is still unknown.
      Correct answer
    Explanation

    A retention needs a cost and scope that bound the whole defect, not just the part that has been inspected and quoted. Where a quote covers only the visible extent of load-bearing dry rot and the full spread is still undetermined, the true exposure remains open-ended, which is what points towards decline, or a specialist report condition to establish the full extent, rather than a retention. Key takeaway: a quoted figure only satisfies the retention criteria if it actually bounds the whole defect, not just the part inspected so far.

Frequently asked questions

7 questions
What 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.