Product sales data: new mortgage requirements: sales data FAQs

Sales data FAQs

Q: How do we report affordability data where there has been no affordability assessment (eg because no affordability assessment is required by MCOB 11.6, such as for interest roll-up mortgages; or, where there has been no affordability assessment where the MCOB 11.7 transitional arrangements have been used)?

A: Report zeros for the affordability items.
 

Q: Is there a definition of a ‘dependant’?

A: The purpose of asking for dependants is to help us get a feel for the degree of expenditure that the borrower(s) may be responsible for. There is no formal definition of a dependant, but we would expect someone to be reported as a dependant where they are a member of the household and financially dependent on the borrower(s). This could potentially include a partner or other relative.

In the case of dependant adults, the rules require them to be reported as a dependant only where they have no income included in the affordability assessment. Note that it does not necessarily follow that a relative in the household is a dependant, as they may have their own financial means (eg employment or pension).
 

Q: Which interest rate stress test should be reported where the mortgage has more than one part (and therefore where each part may receive different treatment under the interest rate stress test requirement in MCOB 11.6)?

A: Firms are required to report either the actual stress rate, or where the rate is fixed for 5 years or more, the fixed rate.

If the loan is split into more than one part, the general rule (unless otherwise stated) is that the item should be completed with reference to the largest part of the overall mortgage balance (as per the notes on specific reporting fields in the Handbook text - see note (2) on page 8 of PS12/16). This applies in the case of the stress test rate.

So, where the largest part of the mortgage is on a rate fixed for more than 5 years, report the fixed rate.
 

Q: What should be reported in the sales data report for ‘size of loan’, if the advance is made up of multiple parts?

A: Report the size of mortgage at the date of completion. This may be made up of more than one part. It should also include fees and charges added to the loan.
 

Q: When should a mortgage be reported in sales data when there are multiple releases of funds (e.g. staged payments)?

A: Report only the amount of the initial advance. ie the first drawdown of funds. Additional release of funds will be picked up through the performance data.  
 

Q Where there are multiple releases of funds during the reporting period, do these need to be reported in the sales data?

A: Only the amount of the initial advance should be reported in the sales data. Additional release of funds will be picked up through the performance data.
 

Q: For the item ‘How the sale was made’, the same code ‘I’ appears for both ‘direct internet’ and for ‘internet’. Was this intended or was it an FCA drafting error?

A: This was an error. Report ‘E’ for direct internet. Report ‘I’ for intermediary. The Handbook is being corrected.
 

Q: Should ‘Right to Buy’ be reported as a Government initiative, ie against the item ‘Was this mortgage advanced under a Government-supported initiative?

A: No. Right to Buy will be captured in the item ‘Type of borrower’ under the option ‘C’ (council/registered social landlord tenant exercising their right to buy).
 

Q: How should mortgage term be reported in sales data – in months or years? 

A: For new sales where the mortgage account was opened on or after 1 January 2015, you must report mortgage term in months.

If you re-submit data on sales where the mortgage account was opened before 1 January 2015, you must report the term in years, as per the original submission.
 

Q: When should the 'Protection plan', 'Borrower gross income', 'Remortgage purpose' and 'Income basis' fields be reported?

A: These data items are relevant only to mortgages that completed prior to 2015, and therefore were originally reported in the old pre-2015 PSD format. They are to be used where data originally provided to us is found to be incorrect and that transaction has to be resubmitted.