CeMAP·MRT · Module 2: Mortgages·UnitMRT · Unit 01Access: Premium
MRT1: Mortgage Law, Practice and Application
MRT1 is the largest unit in CeMAP, covering 15 topics across mortgage law, the house buying process, FCA MCOB rules, property valuation, land law, conveyancing, and regulatory requirements for mortgage advice. With 100 questions in the exam, this is the most demanding unit and requires thorough preparation across all topics.
What’s in it.
15 topics- Topic 01
Legal and Regulatory Framework of Mortgages
42 questions - Topic 02
The House Buying Process
54 questions - Topic 03
FCA Mortgage Conduct Rules (MCOB)
55 questions - Topic 04
Responsibilities of Mortgage Advisers
48 questions - Topic 05
Lender Assessment of Applicants
48 questions - Topic 06
Property Valuation and Surveys
48 questions - Topic 07
Property Defects
48 questions - Topic 08
Borrower Types
43 questions - Topic 09
Mortgage Applications and Processing
48 questions - Topic 10
Land Law and Property Ownership
54 questions - Topic 11
Conveyancing Process
45 questions - Topic 12
Professional Parties Involved in Transactions
48 questions - Topic 13
Affordability Assessments
54 questions - Topic 14
Regulatory Requirements for Mortgage Advice
50 questions - Topic 15
Record-Keeping and Documentation
48 questions
Sample questions
3 of manyA few questions from this unit, with the answer and a full explanation. The complete bank is available when you start practising.
A mortgage adviser works for a firm that only offers products from five lenders. When disclosing their service type to customers, how should they describe themselves?
- As a non-advised service since they cannot offer the full market
- As an execution-only adviser due to their limited product range
- As a specialist adviser focusing on their five partner lenders
- As a restricted adviser, explaining they can only recommend products from a limited panel of lendersCorrect answer
ExplanationAn adviser who can only offer products from a limited panel of lenders must describe themselves as restricted, not independent. Under MCOB 4.4, only advisers with access to an unlimited range of products from the whole market can claim to be independent. The adviser must clearly explain the nature of their restriction to the customer.
Within how many weeks must a mortgage adviser's firm send a final response to a customer complaint before the customer can refer the matter to the Financial Ombudsman Service?
- Six months.
- Two weeks.
- Four weeks.
- Eight weeks.Correct answer
ExplanationUnder FCA DISP (Dispute Resolution) rules, a firm must send a final response to a complainant within eight weeks of receiving the complaint. If the firm fails to resolve the complaint within eight weeks, or if the complainant is dissatisfied with the final response, the complainant may refer the matter to the Financial Ombudsman Service (FOS).
What is the primary purpose of MCOB 11 in the FCA Handbook?
- To regulate the advertising of mortgage products
- To ensure lenders assess whether customers can afford mortgage repaymentsCorrect answer
- To specify how mortgage arrears should be managed
- To establish rules for handling customer complaints
ExplanationMCOB 11 focuses on responsible lending and financing. Its primary purpose is to ensure lenders conduct thorough affordability assessments so that customers are not offered mortgages they cannot sustain, protecting both consumers and the stability of the lending market.
Frequently asked questions
3 questionsHow many questions are in the MRT1 exam?
MRT1 has 100 multiple-choice questions. You need to score 70% (70 out of 100) to pass.
What conveyancing topics are covered in MRT1?
MRT1 covers the full conveyancing process including searches, exchange of contracts, completion, land registration, and the roles of solicitors and licensed conveyancers.
Is MRT1 the hardest CeMAP unit?
MRT1 is generally considered the most challenging unit due to the number of topics (15) and the 100-question exam. Topics like conveyancing and land law require detailed knowledge.