UK Clinical Aptitude Test (UKCAT) Practice Test

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Prepare for the UK Clinical Aptitude Test with our comprehensive test guide. Utilize flashcards and multiple choice questions with hints and explanations to enhance your preparation. Be exam ready!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is a potential outcome of having a "sub-prime mortgage"?

High likelihood of timely payments
Increased risk of loan default
Higher interest rates as a norm
Simplified loan application process

The correct answer is: Increased risk of loan default

A sub-prime mortgage is typically offered to borrowers with lower credit scores or a less stable financial history, making them a higher risk for lenders. This increased risk of loan default arises because borrowers with sub-prime mortgages often struggle to maintain consistent payments due to their financial circumstances. When individuals with lower credit scores take on these loans, the potential for default rises significantly compared to those with prime mortgages, as they may not have the financial resilience to handle changes in interest rates, unexpected expenses, or income fluctuations. As a result, this makes the likelihood of default an important characteristic of sub-prime mortgages, indicating that the choice highlighting increased risk of loan default accurately reflects one of the key outcomes associated with this type of borrowing.