Arrears, default & post-completion
26 practice questions with explanations — 15 free to try
2 of these 26 questions are in the free 15-question taster · the full topic is part of Premium
PassNova has 26 CeMAP — Mortgage Advice practice questions on Arrears, default & post-completion, each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
Arrears, default & post-completion: example questions & answers
2 worked examples with answers and explanations below. Try 15 CeMAP — Mortgage Advice questions free in the browser; the full 26-question Arrears, default & post-completion bank is part of PassNova Premium.
What should a borrower do first if they realise they may struggle to keep up their mortgage payments?
- AStop making the mortgage payments without telling anyone until the position improves
- BContact the lender as early as possible to discuss the situation and options✓
- CImmediately put the property up for sale at auction in order to clear the debt
- DTake out short-term borrowing to cover the shortfall
Answer: Early contact with the lender allows options such as payment arrangements to be explored. Lenders are expected to treat customers in difficulty fairly and consider forbearance before any enforcement.
Under MCOB, how should a lender treat a borrower who has fallen into arrears?
- AAutomatically increase the rate of interest charged on the account as a penalty for falling into arrears
- BStop communicating until the arrears are cleared
- CBegin possession proceedings as soon as one payment is missed
- DDeal fairly with the customer and treat possession as a last resort after considering alternatives✓
Answer: MCOB requires lenders to deal fairly with customers in arrears and to treat repossession as a last resort, considering forbearance options such as payment plans or term changes first.