The unit looks at mortgage products and services offered by the financial services sector in the UK from a residential and commercial perspective. We will discuss the impact of the Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB) and look at the training and competence requirements to which those working in the mortgage environment must adhere.

For customers, technology has changed the house-buying process and we look at the options available and consider the impact of different types of potential structural and non-structural issues and explore the options that are available to lenders.

We will look at stamp duty land tax (SDLT) in England and Northern Ireland, buildings transaction tax (LBTT) in Scotland and land transaction tax (LTT) in Wales. We then consider their implications for customers such as first-time buyers, buy to let, purchasers of single properties as well as those buying multiple properties in a single transaction.

We consider help available to customers experiencing financial difficulty before moving on to those relying on state assistance to pay their mortgage. We also discuss the potential impact of taxation when property is disposed. Finally, we will look at the practical application through a series of case studies and explore why it is important for mortgage advisers to maintain regular contact with customers and to hold regular reviews.

Building a successful career in personal finance

Advanced Mortgage Advice (R07). This unit is relevant for anyone seeking to give mortgage advice to clients and those in financial planning support roles. It is also suitable for paraplanners, technical consultants, supporting roles and those seeking additional CII credits towards completion of the Diploma in Financial Planning. those who do not hold additional CII credits counting towards completion of the Diploma in Financial Planning.

 Purpose

At the end of this unit, candidates should understand the:

• key elements of the mortgage process;
• specialist types of mortgage lending;
• appropriate mortgage advice to clients with complex needs and circumstances.

Assessment

• 2 hour exam
• 55 multiple choice questions (MCQs), 4 case studies each comprising 5 MCQs
• The nominal pass mark is 65%
• The 2022 pass rate for this unit was 75%

Study material - editions available

2022-23 edition (applicable to exams sat 01 Sep 2022 to 31 Aug 2023)