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Cemap 3
mike6912
Posts: 1 Newbie
Hi all
Taking my cemap 3 exam next week and have been going through some test papers, a couple of questions need clarifying if any one would like to chip in!
this is the info provided:
Due to the expense of a forthcoming wedding and Roberts business expansion plans, they have expressed a strong desire to keep costs to a absolute minimum for the first 2/3 years
Question.
Which of the following mortgage products would best suit Robert and Jenny's needs
A Base Rate Tracker
B Capped
C Discounted
D Fixed
Answer C
Query
I really don't understand this answer and i feel the correct answer is B Capped.
Lets just say they recieved a discounted rate of 1% over the next 3 years, but in year 2 the interest rate shot up by over 4% would it still be the most suitabe product?
A capped rate would give you the security of the maximum costs of the next 2/3 years but also you will benefit if the rate goes down?
Is it me or is this question flawed?
Taking my cemap 3 exam next week and have been going through some test papers, a couple of questions need clarifying if any one would like to chip in!
this is the info provided:
Due to the expense of a forthcoming wedding and Roberts business expansion plans, they have expressed a strong desire to keep costs to a absolute minimum for the first 2/3 years
Question.
Which of the following mortgage products would best suit Robert and Jenny's needs
A Base Rate Tracker
B Capped
C Discounted
D Fixed
Answer C
Query
I really don't understand this answer and i feel the correct answer is B Capped.
Lets just say they recieved a discounted rate of 1% over the next 3 years, but in year 2 the interest rate shot up by over 4% would it still be the most suitabe product?
A capped rate would give you the security of the maximum costs of the next 2/3 years but also you will benefit if the rate goes down?
Is it me or is this question flawed?
0
Comments
-
The question as ever is flawed. All this stuff is total nonsense in the real world where for example capped rate mortgages are almost never the best deal as they tend to want a higher rate to start with and in any event often no capped rates even exist. Classic case of experts and regulators knowing now't.
Just play the game and answer how you think they want you to
Incidentaly brokers are shutting up shop in record number - good luck matey!!0 -
The question as ever is flawed.
Typical exam technique required. Forget real world marketing price differences and think generically.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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