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Exam Review

Key Facts: CeMAP Module 2 Exam

2 units

MRT1 and MRT2

LIBF CeMAP Specification

50 + 40

MCQs (MRT1 + MRT2)

LIBF CeMAP Specification

70%

Pass Mark Per Unit

LIBF CeMAP Specification

1 hour

Per Unit Exam

LIBF CeMAP Specification

Sept 2025

New Split Structure

LIBF CeMAP Specification

Brightspace

Online Invigilated

LIBF CeMAP Specification

From September 2025, LIBF CeMAP Module 2 (MORT) is assessed as two separate one-hour online exams instead of the old single two-hour paper. MRT1 (Mortgage Law, Practice and Application) is 50 standalone multiple-choice questions and MRT2 (Mortgage Products and Post Completion) is 40 standalone multiple-choice questions. The pass mark is 70% per unit, meaning at least 35/50 in MRT1 and at least 28/40 in MRT2. Both exams are delivered via Brightspace with remote online invigilation, and the units can be sat in either order and retaken individually.

Sample CeMAP Module 2 Practice Questions

Try these sample questions to review concepts for the CeMAP Module 2 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 187+ question experience with AI tutoring.

1Which FCA sourcebook contains the conduct-of-business rules for regulated residential mortgage contracts, including regulated second-charge lending?
A.MCOB
B.COBS
C.ICOBS
D.BCOBS
Explanation: MCOB is the FCA Mortgages and Home Finance: Conduct of Business sourcebook. Current regulated mortgage scope can include first and subsequent legal mortgages over qualifying residential land.
2For a mortgage contract entered into now, what minimum proportion of the UK land must be used, or intended for use, as or in connection with a dwelling for the FCA regulated-mortgage definition to apply?
A.30%
B.40%
C.50%
D.60%
Explanation: The dwelling-use threshold is at least 40%. The current definition may cover a first or subsequent legal mortgage; it is not limited to a first charge.
3In England and Wales, a residential mortgage is most commonly granted as which type of legal interest in the property?
A.An outright freehold transfer to the lender
B.An equitable charge without registration
C.A charge by way of legal mortgage
D.A lease of the property to the lender
Explanation: In England and Wales, the borrower retains the legal estate and normally grants the lender a charge by way of legal mortgage. The registered charge secures repayment.
4For an in-person recommendation of an MCD regulated mortgage, which document must the firm provide before the customer submits the application to the lender?
A.A Key Facts Illustration (KFI)
B.An annual mortgage statement
C.A formal mortgage offer alone
D.A mortgage ESIS illustration
Explanation: The European Standardised Information Sheet (ESIS) is the standard pre-application illustration of the recommended mortgage’s key features, costs and risks.
5After the Mortgage Market Review, which assessment must a lender make before granting a regulated residential mortgage?
A.Assess verified income against committed expenditure and basic essential spending
B.Apply only an income-multiple ceiling after checking the deposit
C.Use the property valuation as a substitute for income evidence
D.Rely on past credit conduct without examining proposed payments
Explanation: The lender must assess whether the customer can afford the mortgage, taking verified income and relevant expenditure into account. A valuation, income multiple or credit history cannot replace that assessment.
6A borrower is buying a leasehold flat. Which feature is a typical characteristic that a mortgage adviser should highlight compared with a freehold purchase?
A.Automatic freehold ownership of the land
B.A finite lease plus possible service charges
C.An indefinite right to occupy under the original lease
D.No service-charge or ground-rent provisions to review
Explanation: A lease gives rights for a finite term and can carry ground rent and service-charge obligations. The adviser should consider remaining term, ongoing cost and lender criteria.
7Which type of valuation provides the lender with a basic assessment of whether the property offers adequate security for the loan but gives the buyer limited information about the condition of the property?
A.A RICS Home Survey Level 3 (building survey)
B.A RICS Home Survey Level 2 (homebuyer report)
C.A basic mortgage valuation
D.A snagging survey
Explanation: A basic mortgage valuation is carried out for the lender to confirm the property is suitable security and worth roughly the price paid. It is not a survey of condition, so buyers wanting detail should commission a Level 2 or Level 3 RICS survey.
8What does the loan-to-value (LTV) ratio measure on a mortgage application?
A.The borrower's income against the loan
B.The interest rate against the property value
C.The deposit as a percentage of the borrower's income
D.The mortgage amount as a percentage of the property's value
Explanation: LTV expresses the mortgage as a percentage of the property value or purchase price, whichever is lower. A higher LTV means a smaller deposit and greater lender risk, which typically results in higher interest rates and stricter criteria.
9A customer proposes to secure several unsecured debts on a new mortgage. Which question must an adviser address when deciding whether to recommend that consolidation?
A.Whether securing the debts is appropriate given total cost, available alternatives and risk to the home
B.Whether the mortgage rate is below every individual unsecured-credit rate
C.Whether the property value exceeds the total of the unsecured debts
D.Whether each creditor will accept the lender’s product illustration
Explanation: MCOB 4.7A.15 requires the adviser to consider whether consolidating unsecured debt into the mortgage is appropriate, including the cost and the risk from turning unsecured liabilities into debt secured on the home.
10Which professional normally carries out the legal work of transferring ownership and registering the mortgage during a property purchase in England and Wales?
A.An estate agent handling the sale
B.A solicitor or licensed conveyancer
C.A valuer inspecting the security
D.An adviser selecting the product
Explanation: Conveyancing — searches, contracts, exchange, completion, and registration of the transfer and charge at HM Land Registry — is carried out by a solicitor or licensed conveyancer acting for the buyer and often the lender.

About the CeMAP Module 2 Exam

CeMAP Module 2 (MORT) covers mortgage knowledge across two online units. MRT1 examines mortgage regulation, borrowers, advice, security, fees, property issues and surveys. MRT2 examines additional borrowing, mortgage changes, debt consolidation, arrears, lender remedies, repayment methods, rates and mortgage products.

Exam sponsor: LIBF, part of Walbrook Institute London. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

90 questions

Time Limit

Two 1-hour units (MRT1 and MRT2)

Passing Score

70% per unit (MRT1 35/50, MRT2 28/40)

Exam / Certification Fees

£320 for CeMAP Module 2 (includes materials and the first sitting per unit); resits £120 per unit.

Exam sponsor website

Reported exam pass rate: Not published by LIBF. LIBF does not publish a single official pass rate for CeMAP Module 2; each unit requires 70% to pass (MRT1 at least 35/50 and MRT2 at least 28/40). Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

MRT1 learning outcomes 1-6; topic weights not published

Mortgage Regulation, Borrowers and Advice (MRT1)

Regulated mortgages and second charges, auction purchases, borrower needs, lender and adviser responsibilities, market conditions, affordability, suitability and ethical advice.

MRT1 learning outcomes 7-11; topic weights not published

Security, Fees, Property and Surveys (MRT1)

Additional security, guarantors and charges; purchase and mortgage fees; defects, property values, tenure and insurability; valuations and RICS surveys.

MRT2 learning outcomes 1-3; topic weights not published

Additional Borrowing, Mortgage Changes and Debt Consolidation (MRT2)

Further advances, remortgages, second charges, bridging, equity release drawdown, transfers of equity, porting, redemption and the risks of securing other debts on a home.

MRT2 learning outcomes 4-5; topic weights not published

Arrears, Default and Lender Remedies (MRT2)

Mortgage warnings, arrears and forbearance, interest-only capital shortfalls, legal remedies, MCOB requirements and insurers’ subrogation rights.

MRT2 learning outcome 6; topic weights not published

Repayment Methods, Rates and Mortgage Products (MRT2)

Repayment and interest-only structures, rate options, flexible and offset mortgages, specialist products, equity release, government schemes, shared ownership and Islamic home finance.

Preparing for the CeMAP Module 2 Exam

What You Need to Know

  • Passing score: 70% per unit (MRT1 35/50, MRT2 28/40)
  • Exam length: 90 questions
  • Time limit: Two 1-hour units (MRT1 and MRT2)
  • Exam / certification fees: £320 for CeMAP Module 2 (includes materials and the first sitting per unit); resits £120 per unit. Official sources

Using Our Practice Resources

  • Work through all 187 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CeMAP Module 2: Suggested Study Strategy

1Treat MRT1 and MRT2 as two distinct exams and plan separate revision and mock sessions for each.
2Know the MCOB rules in detail, including affordability, suitability, disclosure (ESIS), and arrears handling, as regulation runs through both units.
3Memorise the pass marks: 35/50 for MRT1 and 28/40 for MRT2, both equal to 70%.
4Compare interest rate options (fixed, tracker, discounted, capped and standard variable rates), then distinguish features such as offsetting savings against mortgage debt.
5Separate MRT1 affordability and application topics from MRT2 repayment methods, mortgage changes and debt consolidation; compare the cost and risk of each option.
6Understand equity release product risks and the safeguards of plans meeting Equity Release Council standards; check eligibility, ongoing obligations and effects on benefits and inheritance.

Frequently Asked Questions

How is CeMAP Module 2 structured from September 2025?

LIBF splits Module 2 (the MORT module) into two separate one-hour online exams: MRT1 (Mortgage Law, Practice and Application) with 50 multiple-choice questions and MRT2 (Mortgage Products and Post Completion) with 40 multiple-choice questions. This replaced the old single two-hour paper.

What is the pass mark for CeMAP Module 2?

You need 70% in each unit. That is at least 35 out of 50 in MRT1 and at least 28 out of 40 in MRT2. Both units must be passed to complete Module 2.

Can I sit MRT1 and MRT2 in any order?

Yes. LIBF allows the MRT1 and MRT2 units to be taken in either order, and you can retake an individual unit without resitting the one you have already passed, subject to LIBF resit rules.

How are the CeMAP Module 2 exams delivered?

Both MRT1 and MRT2 are taken online through Brightspace with remote online invigilation. Each is a one-hour multiple-choice exam.

What does MRT1 cover?

MRT1 covers mortgage law, regulation, and application, including MCOB and the FCA framework, property and mortgage law, conveyancing and the buying process, the adviser's role, affordability, credit and underwriting, and valuations and surveys.

What does MRT2 cover?

MRT2 covers additional borrowing, mortgage transfers and amendments, debt consolidation, arrears and lender remedies, repayment structures, interest rates and mortgage products. Its syllabus includes equity release, shared ownership and Islamic home finance. Broad mortgage protection advice is addressed in the applied CeMAP 3 syllabus; it is not a separate MRT2 domain.

Do I need Module 1 before Module 2?

There is no required order. Walbrook suggests FRE1 for regulatory grounding, then MRT1, FRE2 and MRT2, but learners may study the units flexibly. It recommends completing the mortgage units before the applied CeMAP 3 assessment.

Is equity release advice covered by CeMAP Module 2 alone?

Module 2 builds awareness of equity release products such as lifetime mortgages and home reversion, but advising on equity release requires a separate qualification such as CeRER and the relevant FCA permission.

What does CeMAP Module 2 cost?

Walbrook lists CeMAP Module 2 at £320, including study materials and the first sitting in each unit. A resit costs £120 per unit. The full three-module CeMAP costs £735 when purchased together.