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CeMAP·MRT · Module 2: Mortgages·UnitMRT · Unit 02Access: Premium

MRT2: Mortgage Products and Post-Completion

MRT2 covers the product side of mortgage advice, including repayment methods (capital and interest vs interest only), interest rate options (fixed, variable, tracker, discounted), different mortgage product types, specialist lending, fees and charges, and what happens after completion including arrears management and repossession procedures.

Questions
421
Topics
9
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What’s in it.

9 topics
  • Topic 01

    Repayment Methods

    46 questions
  • Topic 02

    Interest Rate Options

    40 questions
  • Topic 03

    Mortgage Product Types

    79 questions
  • Topic 04

    Specialist Lending

    50 questions
  • Topic 05

    Fees and Charges

    43 questions
  • Topic 06

    Arrears Management

    42 questions
  • Topic 07

    Legal Rights of Lenders

    40 questions
  • Topic 08

    Repossession Procedures

    31 questions
  • Topic 09

    Post-Completion Matters

    50 questions

Sample questions

3 of many

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

  1. How is an arrangement fee typically calculated by mortgage lenders?

    • As a fixed amount regardless of loan size
    • As a percentage of the loan amount
      Correct answer
    • As a fixed amount based on the mortgage term
    • As a percentage of the property value
    Explanation

    Arrangement fees are typically calculated as a percentage of the loan amount, usually ranging from 0.5% to 3%. For example, a 1.5% arrangement fee on a £200,000 mortgage would be £3,000. This differs from valuation fees which are based on property value.

  2. A homeowner wants to take out a second charge mortgage to fund their child's university education. The property is their main residence. Which regulatory framework applies to this mortgage?

    • MCOB only if the loan exceeds £25,000
    • PERG 4.10B, as this relates to investment activity
    • COBS, as education funding is considered a commercial activity
    • MCOB, as this is a regulated second charge on a residential property for a consumer purpose
      Correct answer
    Explanation

    When a second charge mortgage is secured on the borrower's main residence and the borrower is a consumer (not an investor or business), it falls under MCOB regulation regardless of the specific purpose. Education funding for family members is a personal consumer purpose, triggering full MCOB protections including affordability assessment requirements.

  3. A borrower takes out a 5-year fixed-rate mortgage at 5.5%. During the fixed period, the Bank of England raises its base rate by 1%. What happens to the borrower's mortgage interest rate?

    • It increases by 1% to match the base rate rise
    • It is renegotiated to reflect current market conditions
    • It remains at 5.5% throughout the fixed period
      Correct answer
    • It increases but by a smaller amount determined by the lender
    Explanation

    The defining characteristic of a fixed-rate mortgage is that the interest rate remains locked at the agreed level regardless of changes to the Bank of England base rate. The borrower's rate stays at 5.5% until the fixed period ends, providing protection against rate increases but also meaning they do not benefit from any rate decreases.

Frequently asked questions

2 questions
How many questions are in the MRT2 exam?

MRT2 has 50 multiple-choice questions. You need to score 70% (35 out of 50) to pass.

What mortgage products do I need to know for MRT2?

You need to understand repayment vs interest-only mortgages, fixed/variable/tracker/discounted rates, offset mortgages, flexible mortgages, buy-to-let, shared ownership, Help to Buy, and specialist products like self-build and bridging finance.