The advice & application process
35 practice questions with explanations — 15 free to try
2 of these 35 questions are in the free 15-question taster · the full topic is part of Premium
PassNova has 35 CeMAP — Mortgage Advice practice questions on The advice & application process, 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.
The advice & application process: example questions & answers
2 worked examples with answers and explanations below. Try 15 CeMAP — Mortgage Advice questions free in the browser; the full 35-question The advice & application process bank is part of PassNova Premium.
What is the first stage a mortgage adviser should complete in the advice process?
- AInstruct a solicitor to begin the legal conveyancing work
- BSubmit the application to the lender straight away so that a lending decision can be obtained quickly
- CGather full information about the customer's needs, objectives and circumstances (fact-find)✓
- DObtain an Agreement in Principle, so the customer knows what they can borrow
Answer: A thorough fact-find establishing the customer's needs, objectives and circumstances is the foundation of suitable advice. Recommendations and applications can only follow once this information is gathered.
What is the purpose of an Agreement in Principle (also called a Decision in Principle)?
- AIt is an indication from a lender of how much it may be willing to lend, based on initial information✓
- BIt is the final binding mortgage offer
- CIt completes the legal transfer of ownership
- DIt is a binding commitment to lend, subject only to the property being valued
Answer: An Agreement in Principle gives an early indication of likely borrowing based on a soft assessment of the applicant. It is not a formal offer and remains subject to a full application, valuation and checks.