By Ross Meader
On 29 April 2016, the Bank of England published a consultation article on plans to develop a new data collection for buy-to-let lending. On 29 July 2016, following the feedback received, the Bank published a summary of the responses and outlined planned changes to the collection. The Bank also published details relating to phase 1 of the data collection, to be implemented from 2017 Q3 data.
Phase 2 delivery
The Bank has today published details of phase 2 of the data collection, to be implemented from 2018 Q1 data. These have been published alongside the release of the PRA’s final policy on buy-to-let underwriting standards,4 recognising that some attributes relate closely to those underwriting standards. In particular, this includes attributes relating to borrower income, tax and portfolio size.
A list of attributes to be delivered as part of phase 2 reporting is shown in Appendix 1. Four attributes have been added since the initial consultation article. These are as follows:
- Capped Interest Rate: This was previously included as a category within ‘Interest Rate Type’. The Bank will now collect this as a separate attribute because capped rates can apply to different types of interest rates.
- Other Property Equity: This has been added to identify where other equity is either taken into consideration in the assessment or included as additional security. This will help provide supporting information for loan-to-value analysis.
- County Court Judgement: This was previously included as a category within ‘Borrower Impaired Credit History’. The Bank will now collect this as a separate attribute to align to PSD reporting.
- Date of Registration: This is applicable to businesses only, and not individuals. It was previously included as part of ‘Date of Birth’, but is to be collected separately to improve clarity.
Four attributes were marked as optional for phase 1 of the collection, which will be mandatory from phase 2 of the collection. These are loan regulation, type of dwelling, date of birth and an accompanying borrower reference.
The Bank is working with firms and the CML to refine details of phase 3 of the collection (the collection of data relating to firms’ corporate books), to be delivered from 2018 Q3 data. Details will be published once that work is complete.
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