So you think you know about mortgages!

No. of Questions= 10

1. 

Who benefits from the insurance provided by the payment of a mortgage indemnity guarantee premium?

a)

The borrower

b)

The lender

c)

The purchaser

d)

The seller

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2. 

When was MIRAS abolished?

a)

2000/01 onwards

b)

2001/02 onwards

c)

1999/00 onwards

d)

2002/03 onwards

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3. 

Special MIRAS provisions continue to apply to home income plans but only if they were in force before what date?

a)

6 April 2000

b)

10 March 1999

c)

9 March 1999

d)

6 April 1999

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4. 

The following can all be utilised as a repayment vehicle for a mortgage, except for one. Which one?

a)

Personal Pension

b)

Company Pension

c)

Term Assurance

d)

PEP

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5. 

An interest only mortgage means that:

a)

the capital is repaid at the end of the mortgage term

b)

a single payment of interest is made at the end of the mortgage term

c)

capital and interest is repaid throughout the mortgage term

d)

interest is paid at a fixed rate throughout the term

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6. 

What type of policy is usually taken out to cover the liability under an ordinary repayment mortgage (capital and interest payment mortgage)?

a)

Endowment

b)

Flexible Endowment

c)

Convertible Term Assurance

d)

Decreasing Term Assurance

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7. 

What rate of stamp duty is payable up to £250,000?

a)

1% on that part of the purchase price in excess of £60,000

b)

1% of the purchase price

c)

1% of the purchase price where this exceeds £60,000

d)

1% of the mortgage amount if it exceeds £60,000

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8. 

The variable rate of interest charged to mortgage accounts

a)

always changes by exactly the same amount as changes in Bank of England base rate

b)

varies between 6% and 16%

c)

is fixed annually for mortgage holders at the time of their annual statement

d)

has the advantage that borrowers benefit from base rate reductions

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9. 

What does a capped mortgage rate mean?

a)

The interest rate is fixed

b)

The interest rate is variable

c)

The interest rate is variable but will not fall below a set rate.

d)

The interest rate is variable but will not exceed a set rate

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10. 

Which is the best type of mortgage to have?

a)

It depends on individual circumstances

b)

Endowment

c)

Repayment

d)

PEP

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REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.