Free CeMAP Mock Exam Questions with Answers (2026)
Try 6 free CeMAP practice questions with answers and explanations — covering FRE1, FRE2, MRT1, MRT2 and a CeMAP 3 case study. Test yourself before the real exam.
Looking for free CeMAP practice questions? Here are 6 realistic exam-style questions spanning all three modules, with answers and detailed explanations.
Each question is in the format you'll face in the real LIBF exam — standalone MCQs for CeMAP 1 and 2, and a case-study scenario for CeMAP 3. Try each one, then click to reveal the answer and explanation.
📝 CeMAP Exam Quick Facts
- 5 units across 3 modules: FRE1, FRE2, MRT1, MRT2 and ASEW/ASSC
- Pass mark: 70% on every unit
- Question types: standalone MCQs + case studies (FRE1, FRE2, ASEW/ASSC)
- All multiple-choice: 4 options, one correct answer
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Question 1: FRE1 — Industry, Regulation and Key Parties
A UK manufacturer has sold machinery to a customer in the United States and will be paid in US dollars.
Why does the manufacturer need the foreign exchange market?
A. To borrow sterling overnight from other banks to cover a liquidity shortfall
B. To raise new share capital from overseas investors
C. To convert the dollars it receives into sterling to settle its own costs
D. To transfer the risk of the customer not paying to an insurer
Click to reveal answer
✓ Correct Answer: C
To convert the dollars it receives into sterling to settle its own costs.
International trade requires currencies to be exchanged. The foreign exchange market lets firms convert foreign currency receipts and payments. It is also used for short-term and long-term overseas investment. Options A, B and D describe other financial markets (money market, capital market, insurance market), not the foreign exchange market.
On ExamDen.uk, every question comes with a detailed explanation, like the sample question above
Question 2: FRE2 — Skills, Principles and Ethical Behaviours
An adviser has two meetings with a client: a fact-find and a recommendation meeting. Between them she researches products and providers.
Which factor should she consider when researching providers as well as products?
A. The number of TV adverts the provider runs
B. The provider's willingness to pay her firm commission on protection products
C. Whether the provider sponsors her firm's staff events
D. The provider's financial strength, service standards and claims record
Click to reveal answer
✓ Correct Answer: D
The provider's financial strength, service standards and claims record.
Product and provider due diligence includes assessing financial strength, service quality, claims record and product terms. Benefits from providers — such as commission, sponsorship or other incentives — must not influence advice and may represent conflicts of interest. A, B and C all describe factors that should not drive provider selection.
Question 3: MRT1 — Mortgage Law, Practice and Application
Which of the following does an RICS Home Survey Level 1 not include?
A. Condition ratings for each element
B. A valuation of the property
C. A report on visible defects
D. A summary of risks to the building
Click to reveal answer
✓ Correct Answer: B
A valuation of the property.
The RICS Home Survey Level 1 is the most basic survey. It reports the condition of the property using condition ratings but does not include a valuation, reinstatement cost estimate or repair advice. A formal valuation requires a Level 2 or Level 3 survey, or a separate valuation report.
On ExamDen.uk, practise one chapter at a time, then sit a full mock in the real question count and time limit
Question 4: MRT2 — Mortgage Products and Post Completion
What is the usual first step for a lender seeking possession of a residential home?
A. Changing the locks
B. Applying to court for a possession order
C. Selling the property at auction
D. Asking the police to remove the borrower
Click to reveal answer
✓ Correct Answer: B
Applying to court for a possession order.
Although a lender can have a contractual right to possession of the property, it will normally seek a court order for an occupied residential home, after following the Pre-Action Protocol. The court can make an outright order, a suspended order or an adjourned order. A lender cannot simply change the locks or remove the borrower without a court order.
On ExamDen.uk, case-study questions ask you to read the scenario first, then answer from those facts
Questions 5–6: ASEW/ASSC — CeMAP 3 Case Study
📋 Client Scenario
Ravi and Alison jointly own a home worth £260,000. They have a £185,000 interest-only mortgage backed by a stocks and shares ISA, which has underperformed. They want to raise a further £25,000 for home improvements and want certainty that the whole mortgage will be repaid.
- Ravi earns £32,000 a year and Alison £16,000.
- The new lender stress-tests affordability at 5.9%.
- They have committed expenditure of £250 a month, and the lender uses statistical living costs of £1,100 a month for the family.
- The lender charges a higher lending charge on any loan above 75% loan-to-value (LTV).
Question 5
Why is staying on interest-only no longer suitable?
A. Ravi has recently become self-employed
B. The interest rate on interest-only is too high
C. They are both past state pension age
D. Their ISA is underperforming and they want certainty
Click to reveal answer
✓ Correct Answer: D
Their ISA is underperforming and they want certainty.
The case study tells you that the ISA repayment vehicle has underperformed and that Ravi and Alison want certainty that the mortgage will be repaid. Only switching to a capital-and-interest (repayment) basis guarantees repayment at the end of the term. The other options (self-employment, interest rates, pension age) are not supported by the facts in the scenario — a reminder that CeMAP 3 answers must come from the case study, not from general assumptions.
Question 6
What does the lender's 'statistical expenditure' represent?
A. Modelled estimates of their living costs
B. Their income tax and NI deductions
C. Fixed loan charges set by the lender
D. Their credit card repayments
Click to reveal answer
✓ Correct Answer: A
Modelled estimates of their living costs.
Lenders may use statistical or modelled data (for example from the ONS) to estimate a household's basic essential and quality-of-living costs. Committed expenditure — such as the £250 per month mentioned in the scenario — must be based on the client's actual outgoings, not modelled. The statistical figure of £1,100 represents the lender's estimate of what the family needs for day-to-day living beyond their fixed commitments.
On ExamDen.uk, a timed mock shows your score against the 70% pass mark, and which chapters are below it
How Did You Do?
| Score | What it means |
|---|---|
| 5–6 correct | Strong foundation — you're close to exam-ready. Focus on timed practice. |
| 3–4 correct | Good start, but some areas need work. Check which modules you got wrong. |
| 0–2 correct | More study needed before you attempt mocks. Review the material first. |
These 6 questions are a small sample. The real exams have 40–60 questions per unit, and the only way to know if you're ready is to take a full timed mock.
Want More Practice?
ExamDen's CeMAP question banks have 500+ exam-style questions per unit — standalone MCQs, case studies, timed mocks in the real LIBF format and AI that pinpoints the learning outcomes you need to revise.
For a full study plan, see our complete CeMAP study guide. If you were searching for past papers, read why LIBF doesn't release them, and what to use instead.
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The ExamDen.uk Team
ExamDen.uk builds exam-style question banks and timed mocks for CeMAP, Cert CII and CII R01–R05, helping UK professionals prepare for their financial services exams.