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