Equity Release - Demonstrate Competency

What challenges do lenders face in meeting customer needs for equity release?

What is the main difference between a capital repayment mortgage and an interest-only mortgage?

What is an annuity?

Which regulator initiated the Mortgage Market Review?

How does the interest charged in a lifetime mortgage with rolled up interest impact the debt?

What is the minimum age requirement for most lifetime mortgage providers?

Which type of plan allows a customer to borrow money and invest it to generate income?

What was considered the most suitable vehicle for a home income plan in the past?

Which type of plan allows the homeowner to sell their property (or a proportion of it) to a reversion provider?

What does a homeowner become in a home reversion plan?

What is the main difference between a lifetime mortgage and a home reversion plan?

What is the role of the Financial Policy Committee (FPC)?

What is the aim of the new Consumer Duty introduced by the FCA?

What are the four key outcomes that firms must build into their operations when dealing with retail customers?

Which regulatory authority is responsible for conduct of business regulation of financial services firms, including smaller firms such as IFAs and insurance brokers?

Which organization is responsible for authorizing providers of regulated mortgage contracts?

Which of the following factors does a firm need to consider in order to determine if the benefits of a lifetime mortgage outweigh the drawbacks?

According to the text, when is an affordability assessment relevant for equity release customers?

According to the text, what records need to be kept by financial firms?

According to the text, what is the recommended approach for keeping records of equity release products?

Which document will provide you with information about the costs of the legal process?

What information will a client be given about their equity release plan?

Which type of equity release plan involves the sale of all or part of the property?

What was the main short-term incentive for providers and advisers of home income plans in the 1970s?

Which type of companies are the main providers of homereversion plans?

What percentage of the equity release market does homereversion plans account for?

Which factors can contribute to regional discrepancies in life expectancy in the UK?

Which age group is typically considered more suitable for homereversion plans?

What are the main requirements for equity release customers?

What is one potential drawback of using equity release to consolidate existing debt?

Which of the following is a concern for customers when considering equity release products?

What is a regulatory requirement for affordability checks in most lifetime mortgages?

What could be a concern for equity release customers regarding set up costs?

Which type of equity release plan allows the customer to continue owning the property?

Which equity release product can potentially reduce the value of the estate left to beneficiaries?

Which equity release plan transfers all benefits of rising property values from the customer and their beneficiaries to the reversion provider?

Which equity release option allows the customer to select the proportion of equity in the property to be protected when the property is eventually sold?

What is the impact on the estate of a rolled up interest lifetime mortgage if the customer lives a long time?

What is a potential concern for home reversion plan customers?

Which age group is typically eligible for equity release products?

What is the eligibility requirement for equity release customers regarding their property's title?

Which type of mortgage allows customers to overpay or underpay depending on their cash availability?

What is the maximum percentage of the capital that can be repaid each year without penalty in many lifetime mortgages?

Which type of mortgage is designed for individuals with health problems or an impaired lifestyle?

What is a benefit of an enhanced lifetime mortgage compared to a standard lifetime mortgage?

Which of the following health conditions may be included in the eligibility criteria for an enhanced lifetime mortgage?

Which of the following is a characteristic of an annuity?

What determines the income generated for the whole period in an annuity?

Which type of annuity provides inflation protection?

Which of the following is a factor that can affect annuity rates?

Which type of mortgage allows a customer to convert from making repayments to an interest roll-up mortgage?

What is the requirement for a property in order to convert a mortgage to an interest roll-up mortgage?

Which of the following is a key feature of a drawdown mortgage facility?

What is the main difference between a standard mortgage and a lifetime mortgage?

Which of the following is a potential risk when borrowing from relatives?

What is a common characteristic of credit unions?

What happens to the property in a joint tenancy when one owner dies?

Which type of document is required to confirm a customer's identity during the equity release application process?

When is a Key Facts Illustration (KFI) issued during the equity release application process?

Which type of ownership allows for unequal financial contributions to be reflected in the ownership of a property?