Tag Archives: cemap questions

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!!

Helen

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
Sue

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 www.cemap123.co.uk or call us on 020 8443 2888.

CeMAP questions from our virtual learning zone (part 5)

Every month we go through our CeMAP forums at http://www.cemap123.co.uk   and  http://www.futuretrend.org.uk/vle/(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 comes from Mansi currently studying CeMAP 2.

Mansi Question:

Hi,

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

Regards

 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.

CeMAP questions from our virtual learning zone (part 4)

Every month we go through our CeMAP forums at http://www.cemap123.co.uk (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.

Taxation:

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

Regards

 David Airs (Futuretrend CeMAP Tutor)

CeMAP questions from our virtual learning zone (part 3)

Every month we go through our CeMAP forums at http://www.cemap123.co.uk (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:

Question:

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?

Answer:

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

CeMAP questions from our virtual learning zone (Item 2)

Every month we go through our CeMAP forums at http://www.cemap123.co.uk (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 Dave S:

Question:
Hello,
Can anyone please explain top slicing in plain English, perhaps with an example of how it would be calculated in a real life situation?

Dave

 

Hi Dave

Top slicing – The good news is that for CeMap you won’t be required to work out top slicing – it can be too complicated !!!

Essentially, with an Investment Bond, whereas one would think that any gain from the Bond would be subject to Capital Gains tax, it is in fact subject to income Tax!! The capital gain is calculated and then divided by the number of years that you have held the Bond – this is then added to your income over the preceding years. Too complicated – don’t need to know it – just remember that any gain is subject to income tax and not CGT.

Hope this helps

David Airs
CeMAP Trainer

Re: Top slicing

That’s a relief! Thank you David.

cemap questions from our virtual learning zone

Every month we go through our CeMAP forums at http://www.cemap123.co.uk (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 Holly D:

Question:

When I booked my exams through IFS, you have the option of registering for CeMAP England/Wales or CeMAP Scotland.  In my text book there are still references to Scottish legislation, does that mean we may still be examined on it? I thought that was the idea of choosing the English/Welsh version so you aren’t examined on Scottish Regs

Answer:

HI Holly

Totally ignore the Scottish stuff. If you do CeMap under English and Welsh law then you can do mortgages in Scotland, believe it or not, not vice versa!

David Airs – CeMAP trainer