Outcome 1 looks at the key factors that underpin the lending decision making processes –the products that can be offered and the sources of information that contribute to lending decision making. Lenders use a structured approach when making lending decisions and learners are required to understand the components of that structure. Lending is a regulated activity in the UK and learners need to understand the impact of the legal and regulatory frameworks on any lending transaction they are reviewing.

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Learners should become familiar with relevant terminology and should make use of this.Their knowledge has to be applied in the context of a given scenario and recommendations and decisions made have to be relevant to that scenario.