Product sales data: new mortgage requirements FAQs

Find out more about our requirements for sales and performance data when reporting mortgages in the new Product Sales Data returns.

Read FAQs which apply when PS 19/23 comes into effect

 

General FAQs

Q: Which mortgages should be reported in the new Product Sales Data (PSD) returns?

A: The rules require the new PSD sales data to be reported for all new sales of regulated mortgage contracts that complete on or after 1 January 2015.

The new PSD performance data must be reported for all live regulated mortgage contracts, including those opened before 1 January 2015 (ie, from 31 October 2004 to 31 December 2014).
 

Q: My firm has not sold any mortgages during the reporting period. Do we need to report PSD?

A: If no sales have been made, then we will expect firms to confirm a nil return, as required by SUP 16.11.3R(3A)(a).
 

Q: My firm is no longer lending. Do we need to report performance data?

A: Yes, if you have live regulated mortgage contracts. If you have no live regulated mortgage contracts, then you must confirm a nil return as required by SUP 16.11.3(3A)(b).
 

Q: How should variations and other changes to a mortgage be reported in the sales data report e.g. further advances, change of borrowers or security with or without additional borrowing?

A: Do report new regulated mortgage contracts in the sales report, eg:

  • sales of new regulated mortgage contracts
  • all contract variations that result in a new regulated mortgage contract (e.g. could be a rate switch, term extension etc.)
  • porting a mortgage to a new property
  • a mortgage granted on an unencumbered property

Do not report the following in the sales data report:

  • further advances
  • release of a retention, or other additional release of funds, on a mortgage already reported in PSD  
  • borrowback of overpayments made
  • contract variations that do not result in a new regulated mortgage contract e.g. rate switches, term extension, transfer of equity

Any additional borrowing will be picked up through the performance data report.
 

Q: How should ‘ported’ mortgages be reported?

A: The existing mortgage should be reported in the performance data as closed when the porting takes place (i.e. porting is reported in the ‘reason for closure of account’ item). The ported mortgage would then be reported as a new mortgage in the sales data, and included in the performance data.
 

Q: Where should the optional reporting fields be reported? (eg ‘type of dwelling’, ‘number of habitable rooms’, ‘number of bedrooms’, and ‘does the property have a garage?’)

A: Where reported, these should be reported in the sales data report, not performance data.
 

Q: Why do the technical documents include some data items from the 'old' pre-2015 PSD (eg 'Protection plan', 'Borrower gross income', 'Remortgage purpose' and 'Income basis')?

A: This is because the new technical documents are forwards and backwards compatible. This means that they accommodate transactions in the 'old' PSD format where the mortgage completed before 1 January 2015, and in the 'new' format where the mortgage completed on or after 1 January 2015. The main purpose for allowing old style PSD transactions to be reported to us is to accommodate cancellation and resubmission of previously submitted PSD transactions, for example where incorrect data has been reported to us.
 

Q: What is the 'cancellation' field designed to capture?

A: The cancellation field allows firms to cancel PSD transactions previously submitted to us, eg if incorrect data has previously been submitted.
 

Q: My firm will not be able to collect all of the new data requirements for applications received before 1 January 2015 and where the sale completes after this date. What is my firm expected to report for these cases?

A: Generally, we expect all firms to report as fully as possible in line with the new PSD reporting requirements from 1 January 2015.  But we are aware that some firms could have short-term difficulties in doing so, as their systems will not have captured the required data for applications made before this date.

Any firm concerned that it will be unable to meet new PSD reporting requirements from 1 January 2015 until 30 June 2015 should contact its Supervisor (or, in the case of C3/C4 firms, the Firm Contact Centre). 

When doing so, you must outline:

  • the reasons for the request
  • the approximate number of cases in your pipeline
  • the time in which you expect it will take the vast majority (eg >95%) of your pipeline cases to complete and the basis for this estimation
  • a clear indication of when you expect all PSD sales data will be able to be reported in the new format.

Upon receiving this information, and as soon as is practicable, your supervisor will make a decision on whether to allow firms to report data in line with the old format between 1 January and for how long.  The schema will be made backwards compatible to enable data to be submitted in both the ‘old’ and ‘new’ formats.  Depending on the extent of a firm’s pipeline, we would expect data to be fully reported in line with the new format in advance of 30 June 2015.   

FAQs which apply when PS19/23 comes into effect

Q: Which mortgages should be reported in Product Sales Data (PSD) returns?

A: Since 2005 it has been a requirement that product sales data (PSD001) must be reported for all new sales of regulated mortgage contracts. There have been subsequent changes made to reporting requirements, meaning that internal product transfers and further advances must be reported in product sales data (PSD001) where they are completed on or after 01 April 2021.

PSD performance data (PSD007) must be reported for all regulated mortgage contracts. Reports covering data from 01 January 2021 should include all regulated mortgage contracts, whether they are owned by firms which are FSMA authorised or not. This is set out in policy statement 19/23.
 

Q: Are debt shortfalls which are bought by credit services firms in scope of PSD reporting?

A: Shortfall debts on regulated mortgage contracts must be reported in the performance report PSD007.  Other conduct standards such as those in MCOB 13 apply and this has always been the case.  If the loan was a regulated mortgage contract then it continues to be so, even if the property in question has been repossessed.
 

Q: All our mortgages allow up to 10% of the loan to be repaid each year without any early repayment charge applying? Should we report these as flexible mortgages?

A: If interest is calculated daily or monthly and overpayments can be made at any time without a penalty being applied, the mortgage should be reported as a flexible product.
 

Q: What interest rate type should we report if a mortgage has been set up with different interest rate types?

A: If the mortgage is, for example, part fixed and part discounted, you should report the interest rate type that applies to the largest portion of the overall mortgage balance. If there is a 50/50 interest rate type split you can decide which interest rate to report. However, when reporting the loan size, you should report the total loan size regardless of the interest rate split.
 

Q: Do you expect us to capture and record credit card arrears/mail order arrears as impaired credit?

A: The definitions for impaired credit mirror those that are used for MLAR reporting purposes. Each of the specified criteria is included as a basis of assessing a borrower's past performance in dealing with loans. Many people’s only credit exposure before applying for a mortgage may have been an unsecured loan, so it is important that unsecured lending is included.

However, we can confirm that we view ‘unsecured loans’ as excluding any form of revolving credit, eg overdrafts and credit cards.
  

Q: Under the categories of borrower you have categories of first time buyer and council house buyer. Both categories could apply – which should we report under?

A: The right to buy (RTB) category. Where the borrower is a first time buyer (FTB) and is also exercising their right to buy, we are more interested in knowing that the borrower is a RTB borrower rather than a FTB.
 

Q: Why do the technical documents include some data items from the 'old' pre-2015 PSD (eg 'Protection plan', 'Borrower gross income', 'Remortgage purpose' and 'Income basis')?

A: This is because the technical documents are forwards and backwards compatible. This means that they accommodate transactions in the 'old' PSD format where the mortgage completed before 1 January 2015, and in the 'new' format where the mortgage completed on or after 1 January 2015. The main purpose for allowing old style PSD transactions to be reported to us is to accommodate cancellation and resubmission of previously submitted PSD transactions, for example where incorrect data has been reported to us.
 

Q: How should business loans be reported where there is a package of securities?

A: Where a borrower has several loans secured against several securities but where there is no specific 1 to 1 correspondence between a specific loan and a specific security, these transactions should not be included within the PSD return. However, where there is a 1-to-1 correspondence we would expect these loans to be included within the PSD return.
 

Q: My firm provides regulated mortgage contracts that are overdrafts secured on a property, with no agreed term for repayment and no regular payment plan. How should these contracts be reported in PSD returns?

A: You should report these mortgages using the interest only/unknown option in the method of repayment field, and as if they have a 1 year mortgage term.
 

Q: If a customer takes out a regulated mortgage contract to raise finance (which could be for any reason) secured on the property that they already own and reside in which is unencumbered (nothing secured against it), how should we report this in PSD?

A: This should be reported as ‘R’ = external remortgage.
 

Q: ‘How do we report a shared equity loan advanced at the same time as a conventional mortgage (e.g. under a government scheme)’? 

A: Firms should report the entire loan amount in the size of loan data field, but the characteristics applicable to the largest portion of the loan should be reported (in this case the conventional mortgage piece). If both portions of the loan (the equity loan and the conventional mortgage) are the same the lender can choose which element to report but the entire loan amount would still need to be reported.

"SA = the loan is a shared appreciation mortgage" should be completed in the Mortgage Characteristics data field, and "F = First time buyer" or "M = Home movers (2nd or subsequent buyers)" should be completed in the Type of borrower data field.
 

Q: How should ‘ported’ mortgages be reported?

A: The existing mortgage should be reported in the performance data as closed when the porting takes place (i.e. porting is reported in the ‘reason for closure of account’ item). The ported mortgage would then be reported as a new mortgage in the sales data, and included in the performance data. Porting should not be reported as a further advance – the definition of further advance is limited to advances secured on the same property as the existing mortgage contract.