Read our mortgages FAQs to help your product sales data submission.
Which mortgages should be reported in Product Sales Data (PSD) returns?
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.
Are debt shortfalls which are bought by credit services firms in scope of PSD reporting?
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.
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?
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.
What interest rate type should we report if a mortgage has been set up with different interest rate types?
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.
Do you expect us to capture and record credit card arrears/mail order arrears as impaired credit?
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.
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?
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.
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')?
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.
How should business loans be reported where there is a package of securities?
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.
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?
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.
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?
This should be reported as ‘R’ = external remortgage.
How do we report a shared equity loan advanced at the same time as a conventional mortgage (e.g. under a government scheme)?
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.
How should ‘ported’ mortgages be reported?
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.