Mortgage Quiz: How Well Do You Know the Property Market?

2. If you buy a home worth £200,000 with a £30,000 deposit, what is your LTV?

• A 15%
• B 85%
• C 70%
• D 30%

3. What is the minimum deposit most UK lenders require for a residential mortgage?

• A 5%
• B 10%
• C 15%
• D 20%

4. What was the UK government's Help to Buy: Equity Loan scheme designed to do?

• A Reduce stamp duty for first-time buyers
• B Allow buyers to purchase with a smaller deposit on new-build homes
• C Provide free conveyancing for low-income buyers
• D Guarantee rent payments for social housing tenants

5. What does a fixed-rate mortgage mean?

• A Your monthly payment never changes for the life of the loan
• B Your interest rate stays the same for an agreed initial period
• C The lender fixes the property valuation fee
• D Your rate is fixed to the Bank of England base rate

6. Which UK body sets the base interest rate that influences mortgage pricing?

• A HM Treasury
• B The Financial Conduct Authority
• C The Bank of England
• D The Prudential Regulation Authority

7. What is a tracker mortgage?

• A A mortgage that tracks your credit score over time
• B A mortgage whose rate moves in line with the Bank of England base rate
• C A mortgage tied to the Halifax House Price Index
• D A government scheme that tracks first-time buyer affordability

8. What does conveyancing refer to in a property purchase?

• A The physical survey of a building's structure
• B The legal transfer of property ownership from seller to buyer
• C Arranging buildings insurance on a new property
• D Negotiating the final sale price with the vendor

9. In England and Northern Ireland, at what purchase price does Stamp Duty Land Tax (SDLT) currently kick in for first-time buyers?

• A £125,000
• B £250,000
• C £300,000
• D £425,000

10. What is an Agreement in Principle (AIP)?

• A A legally binding mortgage contract signed before exchange
• B A document from a lender indicating how much they may be willing to lend, subject to full application
• C A guarantee from the seller that no other offers will be accepted
• D A solicitor's confirmation that a property title is clear

11. What is the typical maximum income multiple most UK high-street lenders will use to calculate how much you can borrow?

• A 3 times your income
• B 4 to 4.5 times your income
• C 6 times your income
• D 7.5 times your income

12. What is negative equity?

• A When your mortgage interest rate exceeds the inflation rate
• B When your outstanding mortgage debt is greater than the current value of your home
• C When a lender charges early repayment penalties
• D When a property is repossessed and sold at auction