How to pass MRT2: products, ERCs and post-completion technique

MRT2 — Mortgage Products & Post-Completion — is 40 standalone questions in 60 minutes with a 70% pass mark. It sits after MRT1 for a reason: once you know the law and the application process, MRT2 asks whether you can tell products apart, price them honestly, and handle what happens after the money moves.

Learn each product as a one-liner

• Tracker — follows an external reference (usually Bank Rate) plus a fixed margin.
• Discount — lender SVR minus a discount; the SVR can move independently of Bank Rate.
• Capped — rate can fall but will not rise above the cap for the capped period.
• Offset — savings netted against the balance so you pay interest on less; especially useful for higher-rate taxpayers.
• Fixed — rate locked for the product term, usually with an ERC if you leave early.

Most wrong answers are a correct description of a different product. If you can state the difference in one sentence, you stop falling for those swaps.

The calculations that keep appearing

• Early years of a repayment mortgage are interest-heavy; capital accelerates later.
• Interest-only needs a credible repayment strategy at outset, reviewed in-term — the property itself is not always enough.
• Fee vs rate: compare total cost over the period the borrower will hold the product, not the headline rate alone.
• ERCs on a multi-year fix usually step down by year as a percentage of the outstanding balance.

Post-completion is where soft answers fail

Arrears and possession questions reward MCOB 13 fairness: engage, treat fairly, possession as a last resort. The compassionate-sounding option that ignores the lender's forbearance process is usually wrong. Further advances, second charges, product transfers vs remortgages, and buildings insurance reinstatement value are the other post-completion favourites — know what each is for before you sit the paper.

A timing plan that works

• 40 questions in 60 minutes is 90 seconds each — tighter than it sounds once a fee comparison appears.
• Do the product-definition questions first; park multi-step ERC or offset calculations and return.
• Never leave blanks. A guessed product one-liner still has a 25% chance; an empty box has none.

Sit timed MRT2 papers until you are consistently over 28/40. We have five MRT2 mocks in the real format — start with MRT2 Paper 1. Unlock MRT2 alone for £9.99 or take all five units for £29.99 lifetime.

Read next: if you failed this unit once already, use Failed a CeMAP unit? The smart way to prepare for a resit.