EQRS Mock Paper 3 — Equity Release SolutionsStandard
A standard-difficulty EQRS mock: home reversion versus a lifetime mortgage, means-tested benefits genuinely at risk, and a mandatory-payment plan versus roll-up. 3 case studies, 30 marks, 60 minutes.
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About EQRS Mock Paper 3
This is mock paper 3 of 5 for EQRS, the Equity Release Solutions unit of CeRER. The 5 papers in this unit run easier → harder so you can build up to exam standard rather than being thrown in at the deep end. This one sits in the standard tier: it is pitched at roughly live-exam difficulty, with distractors that are all plausible until you read them properly.
Every question carries a written explanation, so a wrong answer tells you which rule you have misread instead of just costing you a mark. Questions are original, written against the current CeRER syllabus, and cover the material the way the examiner tests it — precise recall where recall is tested, and judgement where the paper wants judgement.
Format, timing and pass mark
EQRS Mock Paper 3 follows the live EQRS format: 3 case studies × 10 linked questions, in 60 minutes — about 120 seconds a question. Pass mark 21/30 (70%), as in the real assessment. There is no negative marking, so answer everything. 3 case studies carry linked questions: read each scenario once, carefully, before answering any part of it.
What this paper tests
The 30 questions in EQRS Mock Paper 3 break down across 7 topic areas:
- Risks & safeguards6 questions
- Suitability6 questions
- Alternatives5 questions
- Lifetime mortgages5 questions
- Advice process4 questions
- Benefits & tax3 questions
- Home reversion1 question
Try two questions from EQRS Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
Case study 1 — Home reversion or lifetime mortgage?
Dorothy Vance (81) lives alone in her mortgage-free bungalow in Devon, valued at £275,000. She wants to release £110,000 (40% of the property's value) to pay off debts run up by two of her children and to give herself a more comfortable monthly income. She has no interest in leaving anything specific to a particular child and says she 'doesn't want the worry of watching interest pile up'. She is considering a home reversion plan, selling a 40% share of her home for that lump sum, against a lifetime mortgage for the same £110,000.
Home reversion
Under a home reversion plan for a 40% share worth £110,000 of Dorothy's £275,000 home, which statement is correct?
- AThe reversion provider becomes liable for the mortgage interest on Dorothy's behalf
- BHome reversion providers typically pay significantly less than the market value of the share purchased, reflecting the fact that no rent is charged and the provider must wait, potentially many years, before it can realise its share
- CDorothy would receive the full current market value of the 40% share, £110,000, exactly matching a lifetime mortgage of the same amount
- DDorothy would retain full ownership of 100% of the property regardless of the reversion
Reveal the answer
B is correct. Reversion providers discount the price paid for a share below its full market value, because they receive no rent and must wait an uncertain period (until death or care) before they can realise their share and any growth in its value. This 'discount to market value' is central to comparing reversion against a lifetime mortgage.
Case study 1 — Home reversion or lifetime mortgage?
Dorothy Vance (81) lives alone in her mortgage-free bungalow in Devon, valued at £275,000. She wants to release £110,000 (40% of the property's value) to pay off debts run up by two of her children and to give herself a more comfortable monthly income. She has no interest in leaving anything specific to a particular child and says she 'doesn't want the worry of watching interest pile up'. She is considering a home reversion plan, selling a 40% share of her home for that lump sum, against a lifetime mortgage for the same £110,000.
Lifetime mortgages
By contrast, if Dorothy took a lifetime mortgage of £110,000 instead, which statement about the underlying mechanics is correct?
- AShe would immediately own only 60% of the property
- BThe lender would immediately take a 40% ownership share
- CShe would still own 100% of the property, but the loan (plus rolled-up interest, unless she chooses to make repayments) would need to be repaid from the sale proceeds on death or entering permanent care
- DNo interest is charged on a lifetime mortgage under any circumstances
Reveal the answer
C is correct. A lifetime mortgage leaves Dorothy as 100% owner throughout; it is a secured loan, with interest (typically rolling up unless voluntarily paid) added to the debt, repayable from the eventual sale proceeds. This contrasts fundamentally with reversion's permanent transfer of ownership.
Scored under 70%? Revise these next
A near miss is almost always a calculation you cannot do under time pressure, a definition you half-know, or a rule you have never read in the examiner's words. Start with the topic areas above where you dropped marks, then:
- →Drill the calculations on the CeMAP formula sheet — LTV, income multiples, SDLT, APRC, ERCs and rental cover, each worked through.
- →Nail the terminology in the CeMAP glossary — a surprising share of wrong answers are a term you nearly knew.
- →Re-read the syllabus coverage on the EQRS exam guide, then sit the next paper in the ramp.
The other EQRS mock papers
5 timed mocks for this unit, running easier → harder. Sitting the whole ramp is what moves a borderline score to a comfortable pass.