Mortgage advice

At the end of this unit, candidates should be able to understand the:

• house-buying process, from making an offer to completion and the key parties involved;
• different types of borrowers and how to meet their individual mortgage needs;
• different types of mortgage product and repayment options and their suitability for the client;
• legislative and regulatory position of mortgages and the requirements of a mortgage adviser.

Summary of learning outcomes Number of questions

in the examination*
1. Understand the rules relating to the regulation of mortgages according to the 6
Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB).

2. Understand the house-buying process, the key parties involved and their roles. 10

3. Understand the different forms of valuation and survey, the factors that affect 12
property values, and the implications for consumers and mortgage lenders.

4. Understand the common types of borrower and how their main mortgage‑related 6
requirements may differ, what factors may disqualify people from borrowing and
the purpose of additional security including that of guarantors.

5. Understand the economic context for giving mortgage advice. 2

6. Understand the role of a mortgage adviser and the importance and principles of 6
providing advice, including the key factors affecting the advice given.

7. Understand the fees and charges involved in property transactions, including 6

purchase/sale, remortgage, further advance and equity release.

8. Understand the main features of mortgage related protection products, their uses 5
and lenders’ requirements.

9. Understand the principles, procedures and legal implications associated with 8

raising additional money and transferring mortgages.

10. Understand the risks associated with debt consolidation for the consumer and the 2
implications for mortgage lenders.

11. Understand the implications, rights and remedies for the borrower and the lender 4
of non-payment of the mortgage and associated products.

12. Understand the main provisions made by the State to assist homeowners and 4
homebuyers.

13. Understand the main requirements of the legislation affecting homeownership, 3

tenure and mortgage finance.

14. Understand the key features and structure of mortgage products and their interest 17
rate options.

15. Understand the key features of the different types of mortgage capital and 9
interest repayment options.

16. Analyse consumers’ circumstances and recommend appropriate mortgage 25 case study
solutions to specific consumers’ circumstances. related questions

*The test specification has an in-built element of flexibility. It is designed to be used as a guide for study and is not a
statement of actual number of questions that will appear in every exam. However, the number of questions testing each
learning outcome will generally be within the range plus or minus 2 of the number indicated.

Published June 2011 CF6

© The Chartered Insurance Institute 2011
 Important notes
• Method of assessment: 100 multiple choice questions (MCQs) and 5 case studies, each comprising 5
MCQs. 3 hours are allowed for this examination.
• This syllabus will be examined from 1 September 2011 until 31 August 2012.
• Candidates will be examined on the basis of English law and practice in the tax year 2011/2012 unless
otherwise stated.
• Candidates should refer to the CII update website www.cii.co.uk/updates for the latest information on
changes to law and practice and when they will be examined.

Published June 2011 2 of 5

© The Chartered Insurance Institute 2011
 1. Understand the rules relating to the 6. Understand the role of a mortgage
regulation of mortgages according adviser and the importance and
to the Mortgages and Home Finance: principles of providing advice,
Conduct of Business Sourcebook including the key factors affecting the
(MCOB). advice given.
1.1 Describe the rules regulating mortgages according 6.1 Describe the role of a mortgage adviser.
to the Mortgages and Home Finance: Conduct of
6.2 Explain the importance and principles of providing
Business Sourcebook (MCOB).
advice.
1.2 Apply the MCOB requirements to client
6.3 Explain the process of assessing customer’s
circumstances.
affordability.

2. Understand the house-buying process, 6.4 Calculate a customer’s affordability.

the key parties involved and their roles.
7. Understand the fees and charges
2.1 Describe the house buying process and the roles of
key parties involved.
involved in property transactions,
including purchase/sale, remortgage,
3. Understand the different forms of further advance and equity release.
valuation and survey, the factors 7.1 Describe the fees and charges involved in property
that affect property values, and the transactions.
implications for consumers and 7.2 Calculate the fees and charges involved in property
mortgage lenders. transactions.

3.1 Explain the different forms of valuation and survey

and the limitations of each.
8. Understand the main features of
mortgage related protection products,
3.2 Describe the factors that affect property values and
the information contained within reports.
their uses and lenders’ requirements.
8.1 Explain the main features and uses of mortgage
3.3 Describe the principal types of property defect and
related protection products.
their implications for consumers and mortgage
lenders. 8.2 Explain the lenders’ requirements for advising on
mortgage related protection products.
4. Understand the common types
of borrower and how their main 9. Understand the principles, procedures
mortgage-related requirements may and legal implications associated
differ, what factors may disqualify with raising additional money and
people from borrowing and the purpose transferring mortgages.
of additional security including that of 9.1 Explain the principles, procedures and legal
guarantors. implications associated with raising additional
money and transferring mortgages.
4.1 Describe the common types of borrower.
4.2 Describe the options available to different types of 10. Understand the risks associated with
borrower. debt consolidation for the consumer
4.3 Explain what factors may disqualify people from and the implications for mortgage
borrowing.
lenders.
10.1 Explain the risks associated with debt consolidation
5. Understand the economic context for
for the consumer and the implications for mortgage
giving mortgage advice. lenders.
5.1 Describe the UK property market and mortgage
lending sector, and the main conditions that affect
them.

Published June 2011 3 of 5

© The Chartered Insurance Institute 2011
 11. Understand the implications, rights Reading list
and remedies for the borrower and the The following list provides details of various publications
lender of non-payment of the mortgage which may assist with your studies. Periodicals and
and associated products. publications will be of value in ensuring candidates keep
up to date with developments and in providing a wider
11.1 Explain the implications, rights and remedies for the coverage of syllabus topics. Any reference materials cited
borrower for non-payment. are authoritative, detailed works which should be used
selectively as and when required.
11.2 Explain the implications, rights and remedies for the
lender for non-payment. Note: The examination will test the syllabus alone.
11.3 Explain the legislation regarding repossessions. The reading list is provided for guidance only and is not in
itself the subject of the examination.
12. Understand the main provisions made CII/Personal Finance Society members can borrow most
by the State to assist homeowners and of the additional study materials below from Knowledge
homebuyers. Services. CII study texts can be consulted from within
the library. For further information on the lending service,
12.1 Describe the main provisions made by the State to please go to www.knowledge.cii.co.uk/library/services.
assist homeowners and homebuyers.
Mortgage advice. London: CII. Study text CF6.

13. Understand the main requirements

of the legislation affecting Reference works and additional
homeownership, tenure and mortgage reading
finance. Mortgage regulation for intermediaries. Jonathan Denton...
13.1 Describe the legislation affecting all aspects of [et al]. Croydon: LexisNexis UK, 2004.
homeownership, tenure and mortgage finance in A practitioner’s guide to mortgage regulation. Chris
the United Kingdom. Cummings. Old Woking, Surrey: City & Financial, 2007.
Recent developments in mortgage product design. Brad
14. Understand the key features and Baker. London: CII Knowledge Services. Updated as
structure of mortgage products and necessary. Available online via www.knowledge.cii.co.uk
their interest rate options. (CII/Personal Finance Society members only).

14.1 Describe the main types of mortgage. The regulation of mortgage business. Richard Fox. London:
CII Knowledge Services. Updated as necessary. Available
14.2 Describe the different interest rate options available online via www.knowledge.cii.co.uk (CII/Personal Finance
to lenders. Society members only).
The regulation of mortgage intermediaries. Tony Wiltshire,
15. Understand the key features of the updated by Brad Baker, 2010. London: CII Knowledge
different types of mortgage capital and Services. Updated as necessary. Available online via
interest repayment options. www.knowledge.cii.co.uk (CII/Personal Finance Society
members only).
15.1 Describe the types of residential mortgage
repayment options available.
15.2 Describe the implications and obligations placed on
Periodicals
the borrower. Financial Adviser. London: Financial Times Business.
Weekly. Available in print and online at www.ftadviser.com.
16. Analyse consumers’ circumstances Financial Solutions. London: Personal Finance
and recommend appropriate mortgage Society. Six issues a year. Also available online via
www.knowledge.cii.co.uk (CII/Personal Finance Society
solutions to specific consumers’ members only).
circumstances.
Money Marketing. London: Centaur Communications.
16.1 Analyse consumers’ circumstances and recommend Weekly. Available online at www.moneymarketing.co.uk.
appropriate mortgage solutions to specific
consumers’ circumstances. Mortgage Introducer. London: Publishing
Group. Fortnightly. Also available online at
www.mortgageintroducer.com.
Technical Focus. London: Society of Mortgage
Professionals.
Several issues a year. Available online at
www.cii.co.uk/knowledge/mortgageprofessionals
(CII/Personal Finance Society members only).

Published June 2011 4 of 5

© The Chartered Insurance Institute 2011
 Examination guides
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guide before the examination. Please visit www.cii.co.uk
to buy online or contact CII Customer Service for further
information on +44 (0)20 8989 8464.

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Published June 2011 5 of 5

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