CeMAP MRT1 Affordability, Suitability, Risk & Mortgage Term question: modified affordability assessment

CeMAP MRT1Affordability, Suitability, Risk & Mortgage Term

Ben is a mortgage prisoner who would qualify for the MCOB 11.9 modified affordability assessment, but he now asks to add £10,000 to the remortgage to pay for a new kitchen. What is the effect?

A The modified assessment is still available, because extra borrowing under 10% of the loan is ignored
B The modified assessment is still available, because home improvements add value to the security
C The modified assessment no longer applies, so a full MCOB 11.6 assessment is needed
D The modified assessment is still available if the new payment, including the £10,000, is lower

Show the answer and explanation

Answer: C. The modified assessment no longer applies, so a full MCOB 11.6 assessment is needed

MCOB 11.9.1R limits the modified assessment to remortgages with no additional borrowing other than to pay product or arrangement fees. £10,000 for a kitchen is additional borrowing, whatever its size or purpose, so the lender must apply the full MCOB 11.6.2R and 11.6.5R assessment. A lower payment does not override the no-additional-borrowing condition.

Common mistake

Assuming small or home-improvement borrowing keeps the modified assessment available.

Practise more MRT1 Affordability, Suitability, Risk & Mortgage Term questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Affordability, Suitability, Risk & Mortgage Term CeMAP MRT1practice questions & mock exams

Related CeMAP MRT1 questions

Tariq wants the lowest possible payment for the first two years and chooses a 2-year discount of 2% off the lender's standard variable rate. Which risk must the adviser assess under MCOB 4.7A.6R before recommending it?Kwame, a self-employed builder, borrows £60,000 to buy plant and a van for his business, secured by a second charge on the home he lives in. His home already has a first mortgage. Which statement about the second charge loan is correct?Hannah owns her own home. She is buying a flat in Bristol with a mortgage so that her widowed mother can live there, paying Hannah a modest rent. Hannah will never live in the flat. How is Hannah's new mortgage classified?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original practice material mapped to the published CeMAP MRT1 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.