CEMAP Cheat Sheet 2026

The 30 highest-yield CEMAP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What does a 'subject to survey and contract' condition on a mortgage offer mean? → The offer may be revised or withdrawn based on the valuation or legal title issues
2. Which mortgage interest rate option, although temporarily, shields borrowers from rising rates? → Capped rate
3. When is 'enhanced due diligence' (EDD) required in the mortgage application process? → When the customer or transaction presents a higher risk of money laundering
4. What is 'income multiples' methodology in mortgage lending? → Using a set multiple of annual income to determine the maximum loan size
5. What duty does the mortgagee (lender) owe when exercising their power of sale? → A duty to obtain the best price reasonably obtainable at the time of sale
6. What are the FCA's three operational objectives? → Consumer protection, market integrity, and promoting competition
7. What is the criminal offence of 'tipping off' in the context of Anti-Money Laundering regulations? → Disclosing to a suspect that a SAR has been filed, which could prejudice an investigation
8. Which type of property survey provides the most comprehensive assessment of a property's condition? → Full Structural Survey (Level 3 Building Survey)
9. What is the primary role of the Financial Ombudsman Service (FOS)? → To resolve disputes between consumers and financial firms
10. A self-employed applicant applying for a mortgage would typically need to provide how many years of accounts or SA302s? → Two years
11. What does the term 'gazumping' mean in the UK property market? → A seller accepting a higher offer from another buyer after already accepting an offer
12. What will happen to house prices if the supply of housing exceeds the demand? → Prices are likely to go down
13. Which of the following factors does NOT directly affect a property's market value? → The borrower's personal credit score
14. Which income type is typically treated most cautiously by mortgage lenders when assessing affordability? → Self-employed profit averaged over two years
15. Under MCOB 11, what affordability assessment must a mortgage lender carry out before making a mortgage offer? → A stress test to verify the borrower can afford repayments if interest rates rise
16. Under the Money Laundering Regulations 2017, when must a mortgage firm conduct Enhanced Due Diligence (EDD)? → When a customer or transaction presents a higher risk of money laundering
17. What does a lender's affordability assessment primarily evaluate when considering a mortgage application? → Whether the borrower can sustain mortgage repayments over the term
18. What is the role of the surveyor's 'reinstatement cost' figure in a mortgage valuation report? → It provides the estimated cost to rebuild the property for buildings insurance purposes
19. Under FCA DISP rules, how long does a firm generally have to resolve a mortgage complaint before issuing a final response letter? → 8 weeks
20. What is 'negative equity' in a mortgage context? → When the outstanding mortgage balance exceeds the current market value of the property
21. Which of the FCA's Principles for Businesses requires a firm to 'pay due regard to the interests of its customers and treat them fairly'? → Principle 6: Customers' interests
22. Of the four primary asset classes, which one has the highest level of risk yet may yield the largest returns in the medium to long run? → Equities
23. What is the role of a mortgage broker's compliance department in the application process? → To check that advice given meets regulatory standards before submission
24. Which piece of UK legislation created the framework for data protection rights currently enforced by the ICO? → Data Protection Act 2018
25. What is the purpose of an environmental search in the conveyancing process? → To identify risks such as flooding, contaminated land, subsidence, and radon gas
26. What does 'completion' mean in the context of a mortgage and property purchase? → The legal transfer of ownership occurs and the mortgage funds are released to the seller
27. Under anti-money laundering regulations, what must a mortgage adviser verify about a client's deposit? → The source of the deposit funds and that they are legitimate
28. Which professional must carry out a RICS-standard mortgage valuation? → A RICS-qualified Chartered Surveyor
29. A regulated mortgage contract must be secured on which type of property to fall within FCA regulation? → UK residential property where at least 40% will be used as a dwelling
30. Which FCA rule requires mortgage advisers to retain records of their advice and the reasons for recommendations? → MCOB 4.8 (suitability records)