CeMAP Module 3 (ASEW) Practice Questions - LIBF CeMAP Module 3 - Assessment of Mortgage Advice Knowledge (ASEW) Exam - CeMAP Module 3 (ASEW) Practice Questions - LIBF CeMAP Module 3 - Assessment of Mortgage Advice Knowledge (ASEW) Exam

Question 1

A self-employed sole trader applies for a mortgage. The lender's affordability assessment will normally base income on which figure from the applicant's accounts?

Net profit (or share of net profit) shown in the accounts or on the SA302 Gross turnover before any deductions The total drawings taken from the business that year The value of business assets on the balance sheet

Correct Answer:

Net profit (or share of net profit) shown in the accounts or on the SA302

Question 2

During a fact-find, a client states they want the lowest possible monthly payment but also wants to be mortgage-free before retirement in 12 years. These two stated needs partly conflict. What is the adviser's correct first action?

Recommend the cheapest interest-only deal to minimise the payment Explore and prioritise the client's objectives with them to resolve the conflict before recommending Ignore the retirement comment because affordability today is what matters Recommend the longest available term to reduce the monthly cost

Correct Answer:

Explore and prioritise the client's objectives with them to resolve the conflict before recommending

Question 3

A client earns £40,000 basic plus a guaranteed £6,000 annual bonus evidenced over three years, and £4,000 of regular but discretionary overtime. A lender allows 100% of guaranteed income and 50% of variable income. What income figure will the lender use?

£44,000 £46,000 £48,000 £50,000

Correct Answer:

£48,000

Question 4

Under MCOB, when must a mortgage adviser providing advised sales assess whether a mortgage is affordable for the borrower?

Only if the borrower requests an affordability check Only for first-time buyers, not for remortgages Only at the point the offer is issued by the lender Before recommending or arranging a regulated mortgage contract

Correct Answer:

Before recommending or arranging a regulated mortgage contract

Question 5

A client has a £180,000 repayment mortgage and is concerned that their family could not maintain payments if they died during the 25-year term. Which protection product most directly addresses this need?

Decreasing term assurance (mortgage protection) Level term assurance Whole-of-life with a maximum sum assured A standalone critical illness policy with no life cover

Correct Answer:

Decreasing term assurance (mortgage protection)

Exam overview

About this Exam

Prepare with the CeMAP Module 3 (ASEW) Practice Questions - LIBF CeMAP Module 3 - Assessment of Mortgage Advice Knowledge (ASEW) Exam practice quiz. This question bank includes 100 questions covering client, adviser, mortgage, wants, and income. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CeMAP Module 3 (ASEW) Practice Questions - LIBF CeMAP Module 3 - Assessment of Mortgage Advice Knowledge (ASEW) Exam

This practice set contains 100 questions from the matching question bank and focuses on client, adviser, mortgage, wants, and income. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CeMAP Module 3 (ASEW) Practice Questions - LIBF CeMAP Module 3 - Assessment of Mortgage Advice Knowledge (ASEW) Exam

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