Category Archives: CeMAP and DiPFA Training

CeMAP questions from our Virtual Learning Zone (Part 6)

Every month we go through our CeMAP forums at   and  to see what interesting queries have been dziners-org-discussionposted.  Students have access to this  as part of their CeMAP Training programme. This is not only a fantastic resource for  post classroom or distance learning CeMAP study but also provides a whole years access to an eco-system of like-minded folk. and if a tutor is too busy (as was the case with the query below…both CeMAP tutors David and Malik were teaching at the time); what you will find is that there are always other students ready to help;

This months CeMAP query comes from Richard currently studying CeMAP 2.

Richards’s Question:

Morning all,

May be I’m being a bit thick here (!!) But I need help understanding the below please.

I need assistance with the deed of postponement, relating to second charges. In the notes it states:-

To set aside a 2nd mortgage, the original lender requires a deed of postponement that MUST be executed. The D.O.P will postpone the 2nd charge, and make it possible for the original lender to “Tack” a subsequent mortgage (third charge) to an original one.

Errm, can someone help my brain comprehend this please?


James recently completed his CeMAP Fast Track training with us and came to Richards rescue.

James’s answer:

Hi there,

It’s all to do with the order that payments will be allocated in the event of a repossession, the first charge (original mortgage) will be paid first, then the second charge, and if there’s a shortfall then the second charge lender is at more risk of losing their money than the first charge lender.

If the original lender wishes to increase their lending, that will be added to the original loan, and will be repaid in the event of a repossession before the second charge lender receives their money, so they would need a deed of postponement from the second charge lender to make sure that they agree to that happening, if they believe that it would be too much of a risk then they won’t agree to it.

An example:

Original mortgage is £100,000, there’s a second charge loan for £25,000, totalling £125,000 borrowing secured on a £200,000 property.

The customer approaches their first charge lender to borrow an additional £50,000, this would take the total borrowing to £175,000, the original lender can be pretty confident that their £150,000 can be repaid if the house is repossessed, but if property values drop and the house can only be sold for £160,000 then the original lender will have received their money back, but the second charge lender will have lost £15,000. 

The deed of postponement gives the second charge lender the chance to refuse to allow the additional borrowing to be tacked on to the loan that will be repaid before they are able to reclaim their money.

Hope that helps,
Give me a shout if you need any more clarification.

Futuretrend students are crushing CeMAP!

Some inspiring feedback and  excellent results from  some students on David Airs Weekday Fast Track CeMAP classes.

I attended the CeMAP 2 and 3 course of recently and just wanted to thank you as I passed CeMAP 2 and 3 just before Christmas.  CeMAP 2 I achieved merit on the first module and then 3 distinctions on the remainder and I achieved merit on CeMAP 3.

I feel that I would not have achieved this without your course so thank you for your excellent training. Now the even harder part for me as I just need to find myself a job now!!


Hi David

I did the CeMAP 1 today and was absolutely gobsmacked to discover that I got distinction for both units – I thought I’d done okay on the 1st unit and was hoping to scrape a pass on the 2nd, so am absolutely delighted – it must be down to excellent tutoring! Let’s hope 2&3 go well too.

Thanks again for a great course and for your patience.

Best regards

Well done both of you and thank you for the kind words. It’s always great to see candidates shaping their careers by staying focused and working hard.
For information about our CeMAP Training please visit or call us on 020 8443 2888.

DipFA Factfind Exam Tips: How can I analyse protection needs of a family?

The DipFA factfind exam set for Jan 12th 2017 is fast approaching. Our lead tutor Betul Cuninghame explores some concepts worth considering here:exam analyst

When recommending protection policies, always imagine the effects of the financial risks on the family and think in detail. It is not a good practice to see only one aspect of such risks and making recommendations on that basis. Recommending  life cover equal to the mortgage debt only without giving any extra money for other costs after death may not suffice!

EXAMPLE: the death of a parent may mean that:

  • no more income will come from that parent,
  • mortgage is no longer affordable;
  • it may result in repossession due to non-payment of mortgage
  • repossession may bring homelessness to the remaining members of the family
  • the other parent will lose his/her job to look after the children etc.
  • funeral costs and other costs to be paid from the other parent’s income or savings until s/he gets grant of probate – s/he can’t access any savings of the deceased until s/he gets grant of probate, resulting in costly bills to be paid by other means.

All these risks require careful analysis and proportionate amounts to overcome financial issues after the events. Having a life cover just equal to the mortgage debt will only pay off the mortgage but it will not leave any money for the other costs after death of that parent e.g. funeral costs, legal costs (probate), bills to be paid (one parent’s income may not be sufficient to pay the whole household bills) etc.

So, either

  • increase the lump sum amount to cover these extra costs and to provide income with the remaining amount OR
  • have another cover to supplement the life cover: e.g. Life cover to pay off the mortgage as well as a FIB to provide income to cover all these extra costs after the death of one parent.

You should be able to decide what amount of cover would be appropriate and justify it in your reports.

For more help and support with your upcoming factfind exam see how we can help you at our dedicated DipFA Training web site

CeMAP questions from our virtual learning zone (part 5)

Every month we go through our CeMAP forums at   and our students have access to as part of their CeMAP Training programme) to see what interesting queries have been dziners-org-discussionposted.

This months CeMAP query comes from Mansi currently studying CeMAP 2.

Mansi Question:


I need help with mock papers -Payments and products B.(no 11)

question is “Ian and Sandra are buying a new house and have been offered a £120,000, 25 year repayment mortgage at 6%,giving a monthly payment of £6.52 per £1000 borrowed.How much would the total payments compare with an interest only mortgage at the same rate,backed by an Nisa with monthly contribution of £200?

ans is “The interest only mortgage would be £18 month more expensive”.

But cannot work it out .

Kindly help.

David’s answer:

Good morning Mansi,

Easy peasy!!!!

The question is testing whether you know how to work out the costs of a repayment mortgage compared to interest only.

So, Repayment – the mortgage costs 6.52 per thousand, so 6.52 x 120 (thousands) = £782.40 per month

Interest only – 120,000 x 6% = 7,200 PER YEAR. Divide by 12 gives the monthly payment of £600. Then add the cost of the ISA = £200. So Interest mortgage will cost £600+£200 = £800

So, £800 – £782.40 = £17.60 which gives the closest to the answer of £18

I hope this answers your query. Should you need any further explanation please let us know


 David Airs (Futuretrend CeMAP Tutor)

IFS 2016/17 CeMAP Syllabus update delayed

The IFS University College have just informed us that the Certificate in Mortgage Advice and Practice (CeMAP®) examination will change on the 1 December 2016, with the new study material for the 2016/17 examination being released on 17 October 2016.


“It is usual for ifs­­ ­University College to change the examination on 1 September each year however this year due to our company change of name and other changes to the format of the study material, this date has moved to 1 December 2016.”

This gives students studying the current 2015/16 syllabus a lot longer to prepare themselves  and hopefully there won’t be the typical  lack of exam spaces in July/August.

IFS DipFA Fact Find exam 7th July 2016

The Fact Find for the next exam has just been released, and there is plenty to get your teeth into!rp_finance-role1-300x200.jpg

What is covered?

The fact find covers a wide variety of topics, such as;

  • Inheritance Tax Planning
  • Final Salary Pensions
  • Investment Planning
  • Ethical Investments

and more, all to be researched and then written up in a 3 hour exam.

As always, there may also be areas or information missing or incomplete, which you will be expected to spot and account for, followed by some amendments on the day.

What does the exam look like?

Remember, the exam is there to test your knowledge, understanding, and crucially the application of that knowledge to the client’s situation and needs.

You will have to write or type out a full Suitability Report from scratch in three hours.  Whilst the report may not fully resemble a ‘real life’ report, (it is after all an exam) that is a tall order.

A good thing to remember is that you need to explain your recommendations, and why they are suitable for the clients, even if it seems ‘obvious’.

How should you prepare?

Research and Practice!

Reading and studying the required areas covered in the Fact Find is essential. Web searching the basics and then following up with the IFS Study Topic Folders is useful for most candidates.

Then once you have formulated some solid recommendations practice delivering your report in the 3 hour limit.

Remember though that anything can come up as an amendment on the day if the subject is in the syllabus!

Where can I get help?

For those looking to gain extra support on top of the IFS help and guidance, Futuretrend are running online courses and a one day course in London on 11th June 2016

However you choose to study, Good Luck to all those engaging with this exam!

Paul Davis

IFS DipFA Coursework July 2016 A Five Point Guide to get you started…

Ok, so you’ve looked at your Coursework questions…what next?courses-image

First thing is to try and get your head around the main report question.  You need to consider how to draft a business report aimed at the MD of a company that has almost no employee benefits and wants to introduce an Auto-Enrolment pension, plus other potential benefits.  Think about what do you want to know about, and also what do they need to know about?  The question is very helpful here as it lists several points of required information for you.

Second, think about the structure of the report.  Based on my experience, a lot of candidates struggle here.  The Executive Summary has thrown some people.  You can search online for a simple “how to” on this.

Here’s a link I found to a really helpful detailed explanation of what a good executive summary should look like.  

Then think about having a report title, some chapters (with chapter headings!), and work out what each chapter will cover.  Tidy up at the end with a neat summary.

Third think about references.  The referencing has been massively simplified by the IFS, and the new approach is a welcome change of direction, as it will help candidates focus on the actual work rather then spend hours trying to format a full academic bibliography.  But you still need references!  Best to think about this as you go along…

Fourth, think about technical knowledge.  What do you know about stakeholder pensions?  Auto-enrolment?  Employee Benefits?  Costs?  Tax implications for the employer?  Tax implications for the employee?  Bound to be some areas you don’t know much about – best get studying!

Five, when going on to the short answer questions, remember they do not need referencing, or long introductions.  Most short questions in the Coursework can be covered using bullet points or short sentences.  They are called short questions for a reason!

Need more help?

If you are looking for more help, you can consider the Futuretrend online DipFA Coursework course, which I am running, and / or also the IFS tutors as well if you are signed up for them.

Good Luck!

Paul Davis, BA (Hons), Cert. Mgmt (Open), Dip. PFS,

CeMAP questions from our virtual learning zone (part 4)

Every month we go through our CeMAP forums at (which our students have access to as part of their CeMAP Training programme) to see what interesting queries have been dziners-org-discussionposted.

This months CeMAP query is very similar to other queries regarding Share Dividends. As it seems to be a subject that confuses many students we’ve decided to highlight it again.

Haiders Question:

i came across this following question, which i didn’t know how to do the working out for:

Will received a cheque for £300 in respect of share dividends. What was the gross amount upon which this payment was based?

Also if this question was written differently e.g. persons who are in a different tax band etc.. how would it be answered, the working out and how to work out how much tax needs to be paid and also if tax was already paid what was the original amount of dividends gross.

Does it make any difference if person is a tax payer or not? and what percentages and how is it worked out how much each person pays depending on if they are BRT, HRT or ART or even non-tax payer.

David’s answer:

Good morning Haidar,

Answer to your query is quite straight forward.

As you are probably aware, dividends are paid net of the 10% dividend tax.

Therefore as the client has received £300 dividend, this represents 90% of the dividend (because the tax has already been deducted)

Therefore divide by 90 x 100 = 333.33 – or even easier divide by 0.9. This calculation then gives the gross amount of the dividend.


If the client is a BRT, there is no further tax liability

If the client is a HRT, then they have to pay an additional amount of tax of 22.5% based on the GROSS dividend (this is why we need to know how to calculate the gross amount) – so they are paying 32.5% in total. 333.33 x 22.5% = £75.00. This makes the total tax due on a £300 dividend of 108.33 (75.00 + 33.33). The answer to how much extra tax is due (should you get the question) would be £75. The answer to how much tax is due in TOTAL would be 108.33

If the client is an ART then its 27.5% and 37.5%. So 333.33 x 27.5% = 91.66. Total tax due would be 91.66 + 33.33 = £125

I hope this answers your query. Should you need any further explanation please let us know


 David Airs (Futuretrend CeMAP Tutor)

CeMAP questions from our virtual learning zone (part 3)

Every month we go through our CeMAP forums at (which our students have access to as part of their CeMAP Training programme) to see what interesting queries have been dziners-org-discussionposted.

Here is this months CeMAP query from Daniel A:


I’m baffled by how  share dividends work. For instance:
Will has received a cheque for £300 in respect of share dividends.

What was the gross amount upon which this payment was based?

Why is the answer £333.33?


This about ‘grossing up’. A dividend is always paid net of 10% tax. As £300 was received (net), then we need to gross it up i.e. divide by 0.9. 300/0.9 = 333.33, hence 100%.

Hope this clarifies it. Any other problems, don’t hesitate to ask

David A – Futuretrend CeMAP Trainer

IFS DipFA Coursework Jan 2016 …the focus is on economics!

Some pointers…

The IFS Coursework consists mainly of a 4,000 word essay.  The essay is marked according to QCF level 4 relevant academic standards (equivalent to the first year of a degree course).  As part of this, a bibliography meeting the required academic format is mandatory.  There are also three additional short questions on other topics.

The Coursework due for the end of January 2016 focuses on economics – OK it doesn’t actually say that but it is at heart an economics essay plus further work on investing!  You are writing an article for a magazine issued by a firm of solicitors and the potential audience is defined as “higher earners” who hold investments.  This blog covers some basic ideas about how to tackle this tough assignment.  However, there is no substitute for hard work and study!

So, what is this Coursework all about?  Well, if you hadn’t noticed, there have been a lot of significant economic events over the last few years, and those events plus the political and economic decisions that have followed them have had a major impact on investment markets.  The essay asks you to concentrate on the last 12 months.

You could talk about the economic ‘slow-down’ in China; the stalling of growth in the Eurozone and Japan; the re-emergence of growth in the USA and some other countries including the UK and Germany; the on-going Quantitative Easing in the US/UK/Eurozone and Japan; record low or negative interest rates; record low inflation or deflation; the global expansion in credit; and so it goes on…

You might then talk about the impact on investment markets and then the potential impact on people’s investments.

Don’t forget to think about different types of investments, investment products, and portfolio construction including risk, taxation and suitability, that individual clients or potential clients may hold.  Given the audience taxation is likely to be a key consideration for many candidates.

You might also want to cover professional and suitable advice.

The IFS Study Folders contain an excellent starting point for research on the technical side of investing and taxation.  Significant further reading and research is also required as part of this assignment.

It is essential for candidates to understand the referencing and bibliography requirements, and focus on a solid and thought-out structure, with clear headings.  (And don’t forget the other three short questions!)

For those looking for further support in addition to that provided by the IFS, why not consider booking onto the Futuretrend Distance Learning Course?

Paul Davis, BA (Hons), Cert Mgmt.(Open), Dip. PFS.