CeMAP Module 2 study guide
CeMAP Module 2 · Work through your exam, one topic at a time.
CeMAP Module 2 - also referred to as the Mortgages module of the Certificate in Mortgage Advice and Practice - is the second of the three units that make up the CeMAP qualification, the benchmark entry-level credential for anyone wishing to give regulated mortgage advice in the United Kingdom. Module 1 establishes the financial-services regulatory environment; Module 2 is where that framework is applied to mortgage business itself, and Module 3 (assessment of professional competence) tests the applied advisory skills built on the first two. The CeMAP Module 2 study guide has 5 sections and about 1,639 words.
01Mortgage Regulation, Legislation and Supervision
Mortgage advice in the UK sits under FSMA 2000 and the FCA Handbook. The FCA handles conduct for first- and second-charge residential mortgages; the PRA handles prudential supervision of banks and insurers.
348 words, about 2 min02Mortgage Products, Schemes and Repayment Methods
Capital repayment mortgages amortise: each payment covers interest and capital, so the balance reaches zero at term. Interest-only mortgages require a separate repayment vehicle (endowment, ISA, pension, sale of property); the loan never reduces, so affordability must cover both the mortgage and the vehicle premium.
330 words, about 2 min03Mortgage Lending Process, Affordability and Underwriting
A regulated sale runs: fact find, affordability assessment, ESIS, decision in principle (an indication, not an offer), full application, valuation, underwriting, mortgage offer, exchange and completion. Underwriters verify identity and address (AML/KYC), income (payslips, bank statements, SA302s and accounts for the self-employed), deposit source and credit history, then check the property against the lender's security requirements.
318 words, about 2 min04Property, Valuation, Legal Ownership and Related Protections
Land is either registered at HM Land Registry or unregistered (now rare). Title shows the proprietor, class of title, charges and notices.
325 words, about 2 min05Post-Completion Servicing, Arrears, Forbearance and Possession
After completion the lender administers the account: collecting payments by direct debit, applying rate changes, issuing annual statements and handling transfers of equity, further advances and product switches. Borrowers on a reversion rate should be told about cheaper switches, and payment changes generally require notice - commonly 30 days - before they take effect.
318 words, about 2 min