Need help with CeMAP 3!

Meeper

There we go! haha

I went for capped because a capped rate would generally be lower than a fixed to begin with, but as GMS absolutely rightly points out, it will depend on where the cap is placed. Hence my comment:

I'd be ticking the "Capped" option, depending on the numbers given, if there are any. If there are no rate options given, just the descriptions, then absolutely Capped

It depends on the numbers given.

kingstreet

I think it's fair to say the statement that interest rates are likely to increase in the short-term is designed to steer you away from variable products.

Once you decide they are out of consideration, it's then a question of what the fixed and capped options are and how they differ.

I've expanded on what I said earlier as I think this is likely to be a case study question where not only do you have to get the right answer, but you'd also have to confirm the reasons for your advice with back-up justifications.

Wh05apk

With most of the things we do, there is often no black and white, which is why we are "advisors" we adivse, clients then decide, we ultimately have to be guided by clients wishes, ofter, we do things which we feel are madness, but it is the clients dicision (how often does a young family reject life cover!)

Our job is to recommend everything the client needs, but the client will normally deicde based on budget, in the case above you need to read and re-read the question, Keep implies a fixed, however as low as possible implies a tracker possible dependent on rates, so possibly a fixed or tracker could be appropriate depdendent on rates, so either could probably be justified, in the real world, you would ask further questions, in this case, I suspect the information is a little ambiguous?

Gwen36

Brilliant! Thanks everyone for your help. I don't think the questions give you enough info like you say and so that's why I'm finding it hard to decide on the correct answer. And neither do the answers, for example no rates are given in the specimen papers. But I believe they do in the actual exam so I'm told. I'm definately a bit clearer now so thank you for taking the time to reply.

I thought twice about asking an adviser to shaddow him/her because surely it's involving people's confidential information and they don't know me from adam. I can't see an adviser would agree to that so I'm looking for any trainee positions. Fingers crossed for me! Thanks again!

Meeper

You never know until you ask. What do you have to lose?!

Wh05apk

Gwen, where are you in the country? someone may be able to help.

You may also want to register on cherry forums, as they are for advisors, these forums are more public based.

Gwen36

Good point Meeper. I'm in Pewsey, Wiltshire. Thanks I'll do that Wh05apk. I can't thank you enough for all your help.