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QFA - Loans Questions with Answers (100% Correct
Answers)
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: Answer: a lender offering a loan to a
borrower, on condition that the borrower uses some other financial
service of the lender.
Title documents refer to: Answer: the documents used to record the
transfer of a property from one person to another.
The Irish Credit Bureau typically holds a borrower's payment history
and profile going back over WHAT repayment period? Answer: 24
months.
Frank arranges a remortgage with Nore Bank. This means that the
purpose of his
loan is MOST likely:
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(i) to consolidate existing debt.
(ii) to release equity for non-debt related purposes.
(iii) to sell a portion of his interest in his property in return Answer: (i)
and (ii) only.
A remortgage would NOT normally be used for the purpose of:
Answer: selling an interest in the property.
Which of the following statements MOST accurately describes the term
'cost of credit' in relation to a loan? Answer: It is the total projected
loan repayments over the term of the mortgage less the capital
borrowed.
Some years ago, Alice bought her
apartment for €275,000, and borrowed
€250,000. The mortgage outstanding on
her apartment today is €225,000. The
apartment now has a market value of
€175,000. Calculate Alice's negative equity. Answer: €50,000
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, 3
Rebecca takes out a lifetime mortgage of
€100,000 at an interest rate of 5.5%. She
pays no interest or capital repayments on
this loan. How many years would it take for
the loan outstanding to double? Answer: 13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: Answer: are in danger of going into financial difficulties
and may not be able to make their mortgage repayments.
The Code of Conduct on Mortgage Arrears offers protection to:
(i) owner occupiers who are in arrears.
(ii) property owners of any residential property.
(iii) owner occupiers, whilst not yet experiencing financial difficulty,
are in danger of going into arrears. Answer: (i) (iii) only
© 2025 All rights reserved
QFA - Loans Questions with Answers (100% Correct
Answers)
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: Answer: a lender offering a loan to a
borrower, on condition that the borrower uses some other financial
service of the lender.
Title documents refer to: Answer: the documents used to record the
transfer of a property from one person to another.
The Irish Credit Bureau typically holds a borrower's payment history
and profile going back over WHAT repayment period? Answer: 24
months.
Frank arranges a remortgage with Nore Bank. This means that the
purpose of his
loan is MOST likely:
© 2025 All rights reserved
,2
(i) to consolidate existing debt.
(ii) to release equity for non-debt related purposes.
(iii) to sell a portion of his interest in his property in return Answer: (i)
and (ii) only.
A remortgage would NOT normally be used for the purpose of:
Answer: selling an interest in the property.
Which of the following statements MOST accurately describes the term
'cost of credit' in relation to a loan? Answer: It is the total projected
loan repayments over the term of the mortgage less the capital
borrowed.
Some years ago, Alice bought her
apartment for €275,000, and borrowed
€250,000. The mortgage outstanding on
her apartment today is €225,000. The
apartment now has a market value of
€175,000. Calculate Alice's negative equity. Answer: €50,000
© 2025 All rights reserved
, 3
Rebecca takes out a lifetime mortgage of
€100,000 at an interest rate of 5.5%. She
pays no interest or capital repayments on
this loan. How many years would it take for
the loan outstanding to double? Answer: 13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: Answer: are in danger of going into financial difficulties
and may not be able to make their mortgage repayments.
The Code of Conduct on Mortgage Arrears offers protection to:
(i) owner occupiers who are in arrears.
(ii) property owners of any residential property.
(iii) owner occupiers, whilst not yet experiencing financial difficulty,
are in danger of going into arrears. Answer: (i) (iii) only
© 2025 All rights reserved
