In these challenging times of rising interest rates, the mortgage industry demands expertise and resilience from professionals. As a mortgage advisor, equipping yourself with the CeMAP qualification can prove to be a game-changer for your career. In this blog, we will explore how obtaining the CeMAP qualification can empower you to navigate the complexities of rising interest rates and excel in your role as a mortgage advisor.
1. Comprehensive Knowledge and Understanding:
Obtaining the CeMAP qualification provides you with a comprehensive understanding of the mortgage market, regulations, and lending practices. This knowledge equips you to navigate the intricacies of rising interest rates and effectively advise clients on the best mortgage options available. With a solid foundation in mortgage-related subjects, you become a trusted expert in the field and gain a competitive advantage over non-qualified advisors.
2. Building Trust and Credibility:
In uncertain times, clients seek guidance from knowledgeable professionals they can trust. By obtaining the CeMAP qualification, you demonstrate your commitment to excellence and your dedication to staying updated with industry standards. Clients will have confidence in your abilities, knowing that you possess the necessary skills and knowledge to guide them through the challenges of rising interest rates. This helps you build strong relationships and establishes you as a credible advisor in their eyes.
3. Ability to Adapt and Provide Tailored Solutions:
As interest rates rise, mortgage products and borrower preferences evolve. With a CeMAP qualification, you are equipped to adapt to these changes swiftly. You understand the impact of rising interest rates on different mortgage types and can provide tailored solutions to clients. Whether it’s helping clients refinance their existing mortgages or guiding them towards fixed-rate products to mitigate future interest rate increases, your expertise becomes invaluable during these difficult times.
4. Expanding Your Professional Network:
Acquiring the CeMAP qualification opens doors to networking opportunities within the mortgage industry. Engage with other CeMAP qualified professionals, industry associations, and forums where you can exchange knowledge, stay updated on market trends, and collaborate on best practices. Building a strong professional network enhances your visibility, creates referral opportunities, and keeps you at the forefront of industry developments.
5. Advancement Opportunities and Career Growth:
With the CeMAP qualification under your belt, you position yourself for career advancement in the mortgage advisory field. Lenders, financial institutions, and brokerage firms recognize the value of CeMAP qualified advisors, and many prefer to hire professionals with this qualification. The advanced knowledge and expertise gained through Futuretrend’s CeMAP course can lead to higher job prospects, increased earning potential, and the potential to take on leadership roles within the industry.
6. Continuous Professional Development:
Obtaining the CeMAP qualification is not just a one-time achievement but a stepping stone in your journey of professional growth. It demonstrates your commitment to ongoing education and continuous professional development. Stay updated with industry changes, regulatory updates, and market trends even after acquiring the qualification. Pursue additional certifications Such as CeRER and attend relevant workshops or seminars to further enhance your expertise and stay ahead of the curve. A commitment to lifelong learning will set you apart from the competition.
Conclusion:
In a challenging market with rising interest rates, the CeMAP qualification stands as a beacon of professional excellence for mortgage advisors. The knowledge, credibility, and adaptability gained through this qualification empower you to thrive in difficult times and provide exceptional service to your clients. By investing in your professional growth and acquiring the CeMAP qualification, you position yourself as a sought-after mortgage advisor, capable of navigating the complexities of rising interest rates and guiding clients towards optimal mortgage solutions.
By now you probably realise CeMAP is a tough qualification and the syllabus covers such a wide range of financial industry topics. The official manual for CeMAP 1 alone is over 600 pages! So this can be a lonely path to take if you haven’t got direct support from an experienced CeMAP tutor or the invaluable benefit of being part of a peer group studying together, giving each other encouragement and identifying knowledge gaps. If you have decided to go down our suggested CeMAP home study path then hopefully this short guide might help you with an approach to getting it done successfully
CeMAP 1: UK Financial Regulation
Step 1: Unit 1 Study
Read Unit 1 of the UK Financial Regulation Made Easy revision book provided in your pack.
Attempt Unit 1 questions in the UK Financial Regulation Mock Paper A. (50 Questions)
– Answers are found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE; You can decide if you want to attempt 25 questions or 50 questions depending on how much time you have.
Step 3: Recap
Based on your mock test results, do a recap of any areas that you may have struggled with, questions you got wrong or concepts that you didn’t understand or never came across during your studies (whether you chose the right answer or not!)
Also remember, you can do this as many times as you like. Questions and answers are randomised. You also have access for a whole year.
Step 6: Recap
Step 4: Unit 2 Study
Read Unit 2 of the UK Financial Regulation Made Easy revision book provided in your pack.
(Topics 17 to 25, pages 109 to 171)
– Course Slides and Audio files to support this unit can be found on the VLE
Step 5: Unit 2 Test Yourself
Attempt Unit 2 questions in the UK Financial Regulation Mock Paper A. (50 Questions)
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Based on your mock test results, do a recap of any areas that you may have struggled with, questions you got wrong or concepts that you didn’t understand or never came across during your studies (whether you chose the right answer or not!)
Step 7: Mock Test
Attempt the Full UK Financial Regulation Mock Paper B – 2 hour Time Limit.
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE. Try and sit for the full exam of 100 questions at this time. This will give you a feel for how the real CeMAP exam will be. You are more than likely to finish this before the 2-hour time limit but remember this is just a mock test. You are in the comfort of your own home /office/environment. You have nothing to lose.
Step 8: Recap
Based on your mock test results, do a recap of any areas that you may have struggled with, questions you got wrong or concepts that you didn’t understand or never came across during your studies (whether you chose the right answer or not!)
Step 9: Mock Test
Attempt the Full UK Financial Regulation Mock Paper C – 2-hour Time Limit.
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Step 10: Take your exams
How will you know your ready to take your CeMAP 1 Exam? Be sure that you are scoring minimum of 80% consistently in the mock question papers. The LIBF have a database of thousands of questions and they add/ amend these every year according to syllabus changes; so these are just sample questions and unlikely to appear word for word as such in the real exam
Step 5: Mock Test
If you are getting a good score as above with your mock tests (paper-based or online) and feel comfortable with your studies then it’s time to take the final step and sit your official exam with the LiBF (London Institute for Banking & Finance.). Give them a call to book on 01227 818609. You will be provided an option of test centres near you or you could also sit the exam online (proctored).
CeMAP 2: Mortgages
Step 1: Unit 3 Study
Read Unit 3 of the Mortgages Made Easy revision book provided in your pack.
(Topics 1 to 8, pages 7 to 61)
– Course Slides and Audio files to support this unit can be found on the VLE
Step 2: Unit 3 Test Yourself
Attempt Unit 3 questions in the Mortgages Mock Paper A. (25 Questions)
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Step 3: Recap
Based on your mock test results, do a recap of any areas that you may have struggled with, questions you got wrong or concepts that you didn’t understand or never came across during your studies (whether you chose the right answer or not!)
Step 4: Repeat
Repeat steps 1 to 3 for the remaining units
Unit 4 (Topics 9 to 15, pages 62 to 100)
Unit 5 (Topics 16 to 22, pages 101 to 137)
Unit 6 (Topics 23 to 26, pages 138 to 156)
Attempt the Full Mortgages Mock Paper B – 2 hour Time Limit.
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Step 6: Recap
Based on your mock test results, do a recap of any areas that you may have struggled with, questions you got wrong or concepts that you didn’t understand or never came across during your studies (whether you chose the right answer or not!)
Step 7: Mock Test
Attempt the Full Mortgages Mock Paper C – 2-hour Time Limit.
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Step 8: Take your exams
How will you know your ready to take your CeMAP 2 Exam? Be sure that you are scoring minimum of 80% consistently in the 4 different units of the mock question papers. The LIBF have a database of thousands of questions and they add/ amend these every year according to syllabus changes; so these are just sample questions and unlikely to appear word for word as such in the real exam
If you are getting a good score in all units as prescribed above (paper-based or online) and feel comfortable with your studies then it’s time to take the final step and sit your official exam with the LiBF (London Institute for Banking & Finance.). Give them a call to book on 01227 818609. You will be provided an option of test centres near you or you could also sit the exam online (proctored).
CeMAP 3: Assessment of Mortgage Advice
CeMAP 3 has no new study material; the whole aim of the paper is to test what you’ve learnt from CeMAP 2 and how to apply it to a set scenario (of course you will also need background knowledge of CeMAP 1). So CeMAP 3 comprises of 6 case studies for you to read and then attempt 10 multiple choice questions on each
Step 1: Mock Test
Attempt the Full Assessment of Mortgage Advice Mock Paper A –2 hour Time Limit.
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Step 2: Recap
Based on your mock test results, recap on any areas that your may have struggled with or areas you got wrong
Step 3: Mock Test
Attempt the Full Assessment of Mortgage Advice Mock Paper B –2 hour Time Limit.
– Answers found at back of mock papers with justifications
– Digital online version with auto marking available on the VLE
Step 4: Take your exams Same process as above
10 Things you might want to consider whilst attempting the mock cemap papers
1. If you are unable to make a choice and need to spend more time on a question, flag the question and move on to the next.
2. Revise your calculations before taking the paper. There will be Percentage advances, higher lending fees, stamp duty calculations etc.
3.For CeMAP 3: Read the question thoroughly to decide whose shoes you should put yourself in. Sometimes it may be those of a mortgage broker and at other times those of a lender. Try to imagine you are them before answering the question.
4. As you read the case studies if they involve clients try to imagine they are sitting right in front of you. Read the case study with this image in your head. Jot down keywords from the case study.
5. mortgage of conduct business rules are a whole lot! Seems impossible to commit all of them to memory. The news is… You don’t have to. Try mind-mapping the mortgage of conduct business rules to bring it to life and make it easier to study.
6. In the standard multi-choice exam like the CeMAP 1 and 2 test it’s advised to leave out questions you are not sure of and go back to them. Don’t worry, you will have enough time.
7. For CeMAP 3: as questions relate to the specific case study which you have to absorb first. By all means leave out the ones you don’t know initially, but do come back to them before moving on to the next case study.
8. Remember the standard multiple choice exam strategy: Read the question twice without glancing at the answer. Cover the answers with your hands or a piece of paper if you have to.
9. Use the process of elimination with CeMAP for every question. It’s the best technique and can invariably lead you to an answer you weren’t even considering.
10. Keep yourself active during the test. This helps concentration. Take a blank piece of paper for each question and make notes.
So now you have all the tips and techniques to do CeMAP Home study on your own. If you are motivated to do this then please head over to our dedicated CeMAP home study website to book. CeMAP Home Study with Futuretrend (cemap123.co.uk) If you are already booked and studying… here’s wishing you all the best of luck with your CeMAP Exams.
With the whole country more or less on lock-down due to Corona Virus concerns the question is how will this impact on your training requirements to attain your CeMAP qualification.
Obtaining Certification for Mortgage Advice and Practice (CeMAP) is the starting point for future mortgage advisers in the UK. This is a necessary qualification to become a licensed mortgage advisor or work in a mortgage company. Including CeMAP on your resume is a key requirement for your mortgage career. As such taking an organised, well thought out approach to your mortgage training and certification is paramount.
The most effective way of understanding the vast CeMAP syllabus is to attend a classroom course where you can fully immerse yourself without any distractions. but in the light of whats going on at the moment ; You may not fancy travelling anywhere or are forced to self-isolate then the next best thing to CeMAP Classroom training is distance learning CeMAP training .
Here are some key advantages of CeMAP Distance learning so that you can decide if this is for you.
– CeMAP distance learning is flexible and convenient. Learners have the ability to work any time and at any place both with an internet connection or even without. As we also send you hard copies of our core CeMAP training material
– Learners work at their own pace
– Saving of transportation cost (and time) with not having to commute to and from Training location.
– video explainer’s and MP3 files provide visual and audio learning that can be reviewed as often as needed.
– The ability to communicate with fellow classmates independent of spatial distance (Via our online forums and tutor co-ordinated webinars)
Our distance learning cemap option includes:
Coaching by Mortgage industry pro’s (tutor+ option)
Support for 1 whole year
Telephone/group conference support sessions (tutor+ option)
Unlimited email support. (tutor+ option)
Free tutorials/webinars (tutor+ option)
CeMAP study group
Recorded lectures
Free guidance on syllabus updates (tutor+ option)
CeMAP 1, 2 & 3 classroom slides
Full CeMAP 1, 2 & 3 Mock Exam question papers
Access to more exams and resources in our Virtual Learning Zone.
Our two CeMAP Revision Books; UK Financial Regulations Made Easy and Mortgages Made Easy.
So if you are stuck thinking about what to do about this situation you might find that our cemap distance learning option is a more convenient, flexible and in the end, effective training solution. Find out more about our CeMAP distance learning courses here or call us on 020 8443 2888
TCF (Treating customers Fairly) was introduced to make firms focus on how they treat their customers and in particular ensure customers are treated fairly. If you are a CeMAP student you can expect a few questions to arise from this area
All authorised firms must comply with the 11 principles for Business and while quite a few of them are relevant to how firms treat their customers it is principle 6 that is most associated with TCF and for CeMAP Study and Exam purposes it makes sense to have a good understanding of this. You will normally come across this when you start studying CeMAP 1 unit 2 of UK financial regulations.
Principle 6 states that a firm must pay due regard to the interest of its customers and treat them fairly.
TCF means treating customers fairly, irrespective of how they contact you or what product they have. It needs to be embedded within a firm’s culture
How should firms deal with TCF on a daily basis?
Firms are required to adopt TCF as their guiding principle so it becomes part of their culture. Everyone should be part of it from the board through to the senior management and all the way through the organisation.
The responsibility for implementing TCF lies with a firm’s board and senior management.
Areas where a firm could consider embedding TCF:
– Corporate strategy and culture.
– Product design and governance.
– Financial promotions
– Sales and advice.
– Consumer information and services
– Complaint handling
– Firms need to be polite and professional. They will need to be clear and transparent with customers however, that doesn’t mean a customer will always they always get what they want.
TCF is based on principles rather than rules. The regulator has therefore defined 6 consumer outcomes. It is important to pay attention and learn more about how these outcomes can be applied practically for your CeMAP Study and exams
Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture. A good example is how we reward staff. This should not just be with pay but with bonuses, incentives (like health, fitness well-being) etc. If all staff compensation is just based on sales alone for instance, there is a risk that a significant amount of unsuitable sales will be generated as a consequence
Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted appropriately. Taking customers opinions into consideration during the design process and checking to see if sales, cancellations etc met expectations. Also reviewing different groups of customers to ensure communications are enabling them to buy products which suits their needs and not the other way round.
Consumers are provided with clear information and are kept appropriately informed before, during and after a sale. For example, when a customers fixed rate period ends and their mortgage rate changes. Many customers feel aggrieved that they weren’t given due notice of this by their mortgage broker.
Where customers receive advice; the advice must be suitable and take full account of their circumstances. For instance, It would be ideal to make product literature available in braille format for someone who has a visual impairment.
Consumers are provided with products that perform as firms have led them to expect and the associated service is both of an acceptable standard and as they have been led to expect.. This simply means that firms can’t create false expectations or package things in a way that will lead to the consumer being misled.
Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider submit a claim or make a complaint. For example, regarding switching provider a firm could easily impose long notice periods, onerous information demands, communication difficulties and even administrative delays in order to frustrate the customer
So we have looked at the 6 Consumer outcomes expected from TCF. This should help illuminate this important section found in CeMAP 1 Unit 2
When studying for your CeMAP 2 exam knowledge of the purchase process is crucial.
We have created this quick video tutorial to help you lock down the key points around the role of estate agents in the mortgage process.
In the CeMAP exam you can always expect a few questions in and around this. Video tutorials like this can make the CeMAP learning process much easier
If you are interested in gaining access to more videos like this and other resources to help you pass your CeMAP exam then have a look at our home study CeMAP course available on our dedicated CeMAP web site:
The training course covers CeMAP 1, 2 & 3 and has been written and designed by experienced CeMAP tutors; Our CeMAP Home Study programme simplifies all the essential subject areas of the CeMAP syllabus giving you the confidence to pass the CeMAP exam first time.
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?
Thanks, Richard
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 at www.cemap123.co.uk if you need any more clarification.
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.
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
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.
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 posted.
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
TCF (Treating customers Fairly) was introduced to make firms focus on how they treat their customers and in particular ensure customers are treated fairly. If you are a CeMAP student you can expect a few questions to arise from this area
So we have looked at the 6 Consumer outcomes expected from TCF. This should help illuminate this important section found in CeMAP 1 Unit 2
Some inspiring feedback and excellent results from some students on David Airs Weekday Fast Track CeMAP classes.
