MMC | Take the Quiz

What is the basis for the SVR/MMC argument?

Banks not following a tracker rate

Banks changing from a fixed rate to a standard variable rate without informing the customer

Banks not following the standard variable rate

Banks charging secret commission which goes to mortgage brokers

Which documents are required to run an MMC case?

Complete offers and applications

Only statements

Complete offers, applications and PPI redresses

Complete offers, statements and any deeds of variation

If a lender’s interest was contractually set at the Bank of England's base rate (BOE) plus a product margin of 2.5%, what would you write in the interest column of the MMC details sheet?

BOE + 5% surcharge

BOE + 2.5% surcharge

The lender's SVR + 2.5%

None of the above because the interest is set at a fixed rate

If Northern Rock’s interest was contractually set at their own SVR (NRAM), what would you write in the interest column of the MMC details sheet? At the time the contract was written, the NRAM SVR was 6.2% and the BOE base rate was 4%.

NRAM SVR + no surcharge

BOE + 10.2% surcharge

BOE + 2.2% surcharge

BOE + 6.2% surcharge

Which two legal cases are integral to the MMC argument?

Rutherford-Roberts v Blackhorse Ltd (2018) and Plevin v Paragon Personal Finance (2014)

Jarndyce v Jardynce (1852) and United States v Nixon (1982)

Jones v Northern Rock (2009) and Garcia v Roof Top Mortgages (1922)

Nash v Paragon Personal Finance (2001) and Briganza v BP Shipping (2015)

If a mortgage was taken out on 12 December 2004 and redeemed on 12 July 2009, can we accept this case?

Yes

In the data entry process, which transaction type would you assign to a monthly direct debit paid by the debtor?

Credit - Debtor Initiated

Credit - Review

Consolidated Debt

Credit - Lender Initiated

While scrolling through an MMC case DSAR you find a mortgage advance labelled "repayment" and another advance labelled "interest only". What is this an example of?

Mortgage Split

Early Settlement

Mortgage Conversion

Deed of Variation

Halifax has offered a buyer a fixed interest rate of 4.99% for the first year of their contract, followed by their own SVR with a discount of -0.25% for a year, followed by their own SVR for the remainder of the contract term. At the time of the contract, the BoE rate was 4% and the Halifax SVR was 7.75%. What would you write in the interest column of the MMC details sheet?

Fixed rate 4.99%, BOE + 7.5%, BOE + 7.75%

Fixed rate 4.99%, BOE + 3.5%, BOE + 3.75%

Fixed rate 5.0%, BOE + 3.75%, BOE + 7.5%

Fixed rate 4.99%, BOE – 3.75%, BOE + 3.5%