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100+ Free CeMAP Module 2 Practice Questions

Pass your LIBF CeMAP Module 2 — Mortgages (MORT) exam on the first try — instant access, no signup required.

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A borrower wants to borrow more on their existing property without moving lender. Which arrangement is this?

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2026 Statistics

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 test your CeMAP Module 2 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which FCA sourcebook contains the conduct of business rules that regulate first-charge regulated mortgage contracts in the UK?
A.MCOB
B.COBS
C.ICOBS
D.BCOBS
Explanation: MCOB (Mortgages and Home Finance: Conduct of Business sourcebook) sets the FCA conduct rules for regulated mortgage contracts, including advising, selling, and post-sale handling. It is the core regulatory text examined in CeMAP Module 2 MRT1.
2Under the FCA definition, a loan is generally a regulated mortgage contract where it is secured by a first legal charge on land of which at least what proportion is used as a dwelling by the borrower or a related person?
A.At least 50%
B.At least 40%
C.At least 60%
D.At least 75%
Explanation: A regulated mortgage contract requires a first legal charge over land in the UK where at least 40% is used, or intended to be used, as or in connection with a dwelling by the borrower or a related person. This 40% test is a core MCOB scope definition.
3In England and Wales, a residential mortgage is most commonly granted as which type of legal interest in the property?
A.A freehold transfer to the lender
B.An assignment of the freehold to the lender
C.A charge by way of legal mortgage over the borrower's estate
D.A possessory lien held by the lender
Explanation: Under the Law of Property Act 1925, a mortgage of registered land is created as a charge by way of legal mortgage. The borrower retains the legal estate and the lender takes a registered charge securing the debt, not ownership of the property.
4Which document must a mortgage adviser provide to a customer before they make an application, summarising the key features, costs, and risks of a recommended regulated mortgage?
A.A Key Facts Illustration (KFI)
B.An Annual Mortgage Statement
C.A Suitability Report only
D.A European Standardised Information Sheet (ESIS)
Explanation: Since the Mortgage Credit Directive, the ESIS is the standard pre-sale disclosure document for regulated mortgages, replacing the old KFI. It sets out the rate, costs, monthly payments, APRC, and risk warnings in a prescribed format.
5Following the Mortgage Market Review, which standard pricing measure must lenders use to assess whether a mortgage is affordable for the borrower?
A.An affordability assessment of income against committed and basic essential expenditure
B.A fixed income multiple of 3.5 times income
C.The loan-to-value ratio alone
D.The borrower's credit score alone
Explanation: The MMR made affordability assessment mandatory: lenders must verify income and assess it against the borrower's committed expenditure and basic essential outgoings, plus stress-test against future interest rate rises, rather than relying on simple income multiples.
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.The borrower owns the land outright forever
B.Ground rent and service charges may be payable and the lease has a finite term
C.No buildings insurance is ever required
D.Stamp duty never applies to leasehold property
Explanation: Leasehold ownership grants the right to occupy for a fixed term; the freeholder retains the land. Borrowers typically pay ground rent and service charges, and lenders are concerned about remaining lease length because a short lease can be hard to mortgage or sell.
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.
9Under MCOB, when an adviser recommends a regulated mortgage that is not affordable for the customer purely so the customer can repay other debts, the adviser may still proceed only if the mortgage is which of the following?
A.Suitable for the customer and meets a permitted exception with the debts cleared on completion
B.The cheapest available on the market
C.Recommended by the lender's call centre
D.Offered on an execution-only basis without advice
Explanation: MCOB requires recommendations to be suitable. Debt-consolidation recommendations carry extra requirements: the adviser must consider whether consolidating is appropriate, evidence the benefit, and ensure the recommendation remains suitable for the customer's needs and circumstances.
10Which professional normally carries out the legal work of transferring ownership and registering the mortgage during a property purchase in England and Wales?
A.The estate agent
B.The conveyancer or solicitor
C.The mortgage valuer
D.The mortgage broker
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 (the MORT module) covers UK mortgage advice across two online units. MRT1 (Mortgage Law, Practice and Application) examines MCOB and FCA regulation, property and mortgage law, conveyancing, affordability, underwriting, and valuations. MRT2 (Mortgage Products and Post Completion) covers repayment methods, interest rate types, products and schemes, related insurances, arrears, equity release awareness, and post-completion practice.

Questions

90 scored questions

Time Limit

Two 1-hour units (MRT1 and MRT2)

Passing Score

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

Exam Fee

Set by LIBF and approved training providers; see the current CeMAP fee schedule (The London Institute of Banking & Finance (LIBF))

CeMAP Module 2 Exam Content Outline

MRT1 unit

Mortgage Law, Regulation and Application (MRT1)

MCOB and FCA regulation, property and mortgage law, conveyancing and the buying process, the adviser role, disclosure (ESIS), credit assessment, underwriting, valuations, and surveys.

MRT1 unit

Repayment Methods and Affordability (MRT1)

Capital and interest versus interest-only, repayment strategies, income assessment, committed expenditure, stress testing, income multiples, loan-to-value, and lending into retirement.

MRT2 unit

Mortgage Products and Features (MRT2)

Fixed, tracker, discounted, capped, standard variable, and offset rates, flexible features, early repayment charges, buy-to-let, shared ownership, Right to Buy, guarantor, and bridging.

MRT2 unit

Related Insurances and Protection (MRT2)

Buildings and contents insurance, decreasing and level term assurance, critical illness cover, income protection, and mortgage payment protection (MPPI/ASU) matched to the debt.

MRT2 unit

Arrears, Post-Completion and Equity Release (MRT2)

MCOB arrears handling, forbearance, possession as a last resort, shortfalls and negative equity, remortgaging, product transfers, further advances, and equity release awareness.

How to Pass 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 fee: Set by LIBF and approved training providers; see the current CeMAP fee schedule

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CeMAP Module 2 Study Tips from Top Performers

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%.
4Practise the interest rate types side by side (fixed, tracker, discounted, capped, SVR, offset) so you can compare them under exam pressure.
5Learn the protection products and which mortgage type each matches: decreasing term for repayment, level term for interest-only.
6Review equity release safeguards such as the no negative equity guarantee and the right to remain for life, plus their impact 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 mortgage products and post-completion, including repayment methods, interest rate types such as fixed, tracker, capped and offset, specialist products and schemes, related insurances, arrears handling, equity release awareness, and post-completion practice.

Do I need Module 1 before Module 2?

There is no strict requirement, but LIBF recommends completing Module 1 (UK Financial Regulation) first because it provides the regulatory foundation. Units can be studied flexibly within your registration window.

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.