These adjustments are applicable to the following case types: Endowment Mortgage, Pension Mortgage, Single Premium Payment Protection, Mortgage Reconstructions, and Loan Reconstruction.

 

 

Lump sum / capital reduction   

When this adjustment is used, the amount entered will be used to reduce the balance with. It is typically used for payments greater than £1000 and will trigger a recalculation of payments and balance.

 Mortgage payments along with the balance for interest may not reduce until the next month or even later depending on the lender and the actual account method, the date of the actual payment may also affect how and when you will see the payment react within the calculation. The date of the lumpsum and the amount is required, the to date is not.

 

Example: Balance for interest in detailed recalc screen: 01/03/20 - 80,000

Set adjustment Lumpsum: 01/03/20 - 2,500

Effect: Balance for interest in detailed recalc screen: 01/03/20 - 77,500

 

Care must be taken if used at the same time as the Set Mortgage payment adjustment as this may cause an adverse effect.  If a negative amount is entered, the balance will increase. If the account is in arrears or there is an arrears balance, the lumpsum amount will apply to this first and if there is any remainder towards the balance.

 

Override

When this adjustment is used, the amount entered will be used to reduce the balance with smaller ad hoc payments (less than £1000) or to reflect regular additional payments made to the account.   This payment may affect the account at the time of payment or the month after as it does not trigger a recalculation in the system.  It is possible for the additional payments to sit on the account for some time and then reduce the balance for interest when the lender does a recalculation.  The way in which it affects the account depends on the lender and the method of mortgage (annual accounts may have quite a delay).

 

Example: Balance for interest in detailed recalc screen: 01/04/23 - 16,000

Set adjustment Override: 09/04/23 - 125

Effect: Balance for interest in detailed recalc screen: 09/04/23 - 15,875 

Fee

This adjustment is used when an additional fee has been charged by the lender. Using this adjustment has no effect on the mortgage. The fee date and amount are required, the end date is not. (Example uses for fee adjustment may include items such as survey fees and fixed rate arrangement fee)

 

The account is not affected by this adjustment, it is for documenting purposes only.

 

Accrued fee  

This adjustment is used when a fee has been charged by a lender and the amount specified is added to the mortgage amount for the date set. The to date is not required therefore for multiple fees, multiple rows of adjustments will need to be added. 

 

This can be used to include indemnity premiums and buildings and contents insurance (when appropriate).  It can also be used for further advances (when covered by the same policy) or new build or retention amounts when released.

 

Example: Balance for interest 01/01/21 80,000

Set adjustment Accrued fee: 10/01/21 3,200

Effect: Balance 10/01/21 83,200 - this effect can be seen on the detailed recalc screen

 

Note: If the amount of the accrued fee is less than £1000, a forced recalculation adjustment will also need to be added.

 

Annual Accrued Fee

This adjustment is used to model a recurring annual fee such as buildings and contents insurance and depending on how cases are processed - some premium funded type accounts such as the Halifax career mortgage.  It will apply from the start date to the end date, and can be set to increase each year by a fixed amount or a percentage in the same way as Annual Premium. When using this adjustment alongside the ‘Monthly Premium’ adjustment ensure that their specified dates do not overlap.

 

Monthly premium

This adjustment should be used for all insurance premiums such as endowment/DTA (decreasing term assurance). Date ranges and amount are required for the adjustment to work. Additional fields are available in the case of further changes to the adjustment.

 

Standard premium example: 01/01/01 195.00 01/01/03

Effect: This will apply a monthly premium of £195.00 for two years. This will be added to the Net payment column in the detailed recalc screen.

 

Low start plan premium example: 01/01/01 195.00 01/01/03 Simple% 20 Years 1-2

This will start the monthly premium at 195.00 and increase this by 20% over the first year and 20% again at the end of the second year.

4 weekly premium

 

This adjustment should be used for all insurance premiums such as endowment/DTA (decreasing term assurance) that occur on a 4 weekly basis. Date ranges and amount are required for the adjustment to work. Additional fields are available in the case of further changes to the adjustment.

 

Standard premium example: 01/01/01 195.00 01/01/03

Effect: This will apply a 4 weekly premium of £195.00 for two years. This will be added to the Net payment column in the detailed recalc screen.

 

Low start plan premium example: 01/01/01 195.00 01/01/03 Simple% 20 Years 1-2

This will start the monthly premium at 195.00 and increase this by 20% over the first year and 20% again at the end of the second year.

Annual Premium

This adjustment is used when endowment / insurance premiums are paid on an annual basis. They are entered in the same way as monthly premiums and can increase by either a fixed amount or a percentage over a defined period, using “Adjustment Type”, “Adjustment Value” and “Adjustment Period”.

 

Example: Standard annual premium example: 01/01/01 1195.00 01/01/03

Effect: This will apply an annual premium of £1,195.00 for two years. The net payment column will show this payment on the view detailed recalc screen

 

Low start plan annual premium example: 01/01/01 2000.00 01/01/03 Simple% 10 Years 1-2

This will start the annual premium at £2000 and then increase this by 10% over the first two years 

Increase %                  

This adjustment allows you to increase the current interest rate by an amount set in the value column for the date period set. This is useful for entering in tracker mortgages which normally use BOE base rate.

 

Example: Current interest rate: 01/01/01 6.75%

Set adjustment Increase rate 01/02/01 2% 01/04/01

Effect: The interest rate starts off at 6.75%. It then rises to 8.75% for 2 months after which it drops back down to 6.75%. This can be seen in the interest column of the view detailed recalc screen.

 

Discount %

This adjustment is an interest rate adjustment. It will reduce the current interest rate for the case by the amount defined within the specified date range when creating the adjustment.  A start and end date will need to be specified to use this adjustment. The effect of this adjustment can be seen in the interest rate column of the detailed recalc screen.

 

Example: Existing interest rate on account: 5.75%

Set adjustment Discount rate: 01/02/23 3% 01/04/23

Effect: Interest rate will reduce to 2.75% on the date of 01/02/23 for the 2nd and 3rd month of 2023

 

Note: When this adjustment is used alongside the fixed rate adjustment, the discount rate will reduce the rate set by the fixed rate if both adjustments have overlapping date ranges.

 

Fixed %

This adjustment is an interest rate adjustment. It will set the interest rate for the case as the amount defined within the specified date range when creating the adjustment. A start and end date will need to be specified to use this adjustment

 

Note: When this adjustment is used alongside the discount rate adjustment. The discount rate will be applied to the fixed rate if both adjustments have overlapping date ranges.

 

Example: Set adjustment Fixed rate: 01/01/01 6.5% 01/01/03

Discount rate: 01/01/01 2% 01/03/01

 

Effect: For month 1 and 2 of 2001, the interest rate applied will be 4.5%. After this, the fixed rate of 6.5% will be applied. The change in the interest rate can be seen in the interest rate % column of the detailed recalc screen.

 

Capped %

This adjustment is used to set a maximum that an interest rate cannot go above. To date is required for this adjustment so that for the date period set, fluctuating interest rates will not go above the amount specified. 

 

Example: Set adjustment Capped rate 01/01/20 7% 01/01/21

Effect: Interest rate will fluctuate based on interest table selected however will not go above 7% from 01/01/20 for a period of a year. Interest rate can be checked on a case by clicking detailed recalc screen.

 

Note: This adjustment can be used together with a collar rate adjustment which will set a minimum interest rate

Collared %

This adjustment is used to set a minimum that an interest rate cannot go below. To date is required for this adjustment so that for the date period set, fluctuating interest rates will not go below the amount specified. 

 

Example: Set adjustment Collar rate 01/01/20 2% 01/01/21

Effect: Interest rate will fluctuate based on interest table selected however will not go below 2% from 01/01/20 for a period of a year. Interest rate can be checked on a case by clicking detailed recalc screen.

 

Note: This adjustment can be used together with a capped rate adjustment which will set a maximum interest rate.

 

Surrender value    

This adjustment is used for endowment cases and used to specify policy surrender values. The surrender value is the amount paid when an insurance policy is cancelled before it reaches the agreed maturity date. Both the date and amount fields are required for the surrender value to have an impact on the calculation, start date of adjustment must be the end date of the calculation  

 

Example: Set adjustment Surrender value 01/02/21 32,220.45

Effect: On the last day of the calculation 01/02/21 the amount of 32,220.45 will be removed from any redress due 

 

Group settings can also affect this adjustment:

- Remove increase - This is the system default selection that will reduce the redress value by the positive amount entered in for the surrender value

- Add decrease - This option will add the surrender value onto the redress if a negative value is entered

- Both Add and Remove - This option will combine the actions of Remove increase and Add decrease

- None  - This option will mean the surrender value has no effect on the redress value 

Forced recalculation

This adjustment is used to recalculate payments on an account. A to date is not required so for every month the adjustment is required, an additional adjustment row will be needed dated before a payment is due.

 

Example: Customers payment should change after they make a lump sum payment on their yearly review mortgage. Lumpsum was paid on 05/03/01

Set adjustment Forced recalculation: 01/04/01 0.00 - dated before next payment

Effect: Payment will be recalculated in April instead of waiting for year end and will take into account the reduced balance

 

When an accrued fee is applied where the amount is for less than £1,000 a forced recalculation will be needed (a forced recalculation automatically takes place for accrued fees of £1,000 plus).

 

Recalc current rate

This adjustment is used in the case of lenders who set annual monthly payments. It is used to facilitate the recalculation of a monthly mortgage payment based on the current active interest rate, rather than the rate in force at the annual review date. It may be required when rates change from the SVR to a specific rate (or vice versa) part way through a year.  Also when a product ends it may be used to force the rate to recalc if the system indicates that this has not been done. A start date, value and end date are required for this adjustment.

 

Example: Customer's current product ends and they switch to lender's SVR

Set adjustment Recalc current rate 05/03/24 0.00 05/06/24

Effect: Net payment is recalculated from 05/03/24 without using the system parameters. 

Set IBB

This adjustment allows you to set the current interest bearing balance and is really only for use when moving between schemes with the same lender (e.g. changing from Halifax Budget Plan to Halifax Standard)

Example: End of period tab 1 01/12/20 interest bearing balance is: 43,000

Move to new scheme and start of period tab 2 01/12/20 interest bearing balance is: 43,070

Since we require the interest bearing balance to be the same as the end of period 1, set adjustment set IBB 01/12/20 43,000. To date is not required.

Effect:  This will ensure that the interest bearing balance for the start of period tab 2 is 43,000. Effect of adjustment can be seen in the balance for interest column on the view detailed recalc screen.

 

Set IBB start date

This adjustment allows you set a date for the interest bearing balance by entering in a start date and end date. The start date is the IBB start date and the end date is used to see which calculations this should be included in. The date entered will overwrite the start date entered in the multilender screen and set the IBB from the date given and recalculate according to the lender selected. This adjustment will also make provision for any bank holidays that occur during the year, ensuring that any dates are either rolled forward or back to miss bank holidays.

 

Example: Set adjustment Set IBB start date 01/03/22 0.00 01/04/22

Effect: IBB start date will be set to 01/03/22 rather than case start date.

 

Monthly payment

This adjustment is used for recurring additional monthly payments or underpayments made to a mortgage. A start date, value and to date are required. Use the 1st of the month for the start date for the adjustment to take effect correctly. When specifying an increasing monthly payment an adjustment type (simple %, compound % or amount) can be entered along with the period of change.

Using a positive value will indicate a overpayment; a negative value for an underpayment.

 

Example: Current account payment:01/01/01 £375

Set adjustment Monthly payment: 01/01/01 50 01/04/01

Effect: For months 1, 2, 3 and 4 the monthly payment will be £425

 

Example 2: Current account payment:01/01/01 £375

Set adjustment Monthly payment: 01/01/01 -50 01/04/01

Effect: For months 1, 2, 3 and 4 the monthly payment will be £325. As this is an underpayment, the arrears balance will begin to build up and/or be added to.

 

This adjustment is recommended for insurance related payments; the Accrued fee or Lumpsum adjustment can be used for mortgage related overpayments.

 

Missed payment - Mortgage

This adjustment is to be used when one or more mortgage payments has been missed. When using this adjustment only the date of the missing payment is required, no amount is needed. For the date period entered, no mortgage payment will be registered on the account.

 

Example: Monthly payment is on 11th

Adjustment entered in as: Missed payment 01/01/03 0.00 01/04/03

Effect: For months 1, 2 ,3 and 4 a payment of 0 will be registered on the account.

 

Note: We advise that you enter the 1st day of the month rather than the contractual due date (if consecutive payments are missed, you must enter the date range). A missed payment adjustment will contribute to an arrears balance and this adjustment will not affect any other adhoc payments such as lump sums or overrides

Payment holiday

This adjustment is used to set payment to 0 where a payment holiday has been previously agreed and therefore does not add to the arrears balance. A start date and an end date are required for this adjustment, a value is not required.

 

Example: Set adjustment: Payment holiday 01/05/21 0.00 01/08/21

Effect: In the view detailed recalc screen the net payment column will show the payment as £0.00 from 01/05/21 up to and including 01/08/21. The arrears column is not affected and will stay at the same value.

Set Mortgage payment

Please note that this adjustment should never be used in a mortgage comparison. The purpose of this adjustment is to create over / underpayments based on using the system adjustment generator (full details are in the adjustments section, we recommend that you familiarise yourself with this section prior to use). This allows you to override the monthly mortgage payment for a given period, as calculated by Redress Manager. When a positive value is entered this indicates the actual mortgage payment made by the customer, replacing the system calculated value. A negative value works in the same way as a negative Monthly Payment adjustment.

 

No Payment

This allows payments that would normally have been made to be cancelled, therefore affecting the mortgage balance. This will include the mortgage payment along with any “Monthly Payment”, “Lump Sum”, or “Over-ride” for the period specified. It does not affect Endowment, DTA premiums etc.

 

Change Payment Day  

This adjustment allows you to change the day of the month on which the mortgage payment is made and will accept a value from 1-31 inclusive. Use the 1st of the month as the start date (month you want it to take effect from) and the new date as the value entry. This will ensure that no monthly payments are missed. A to date is not required.

 

Example: Current payment date is 11th, would like to change it to 20th

Set adjustment Change payment day 01/03/2020 20.00

Effect: From 01/03/20, payment date is changed to 20th

MIRAS Amount

This adjustment is to be used when you need to enter a non standard MIRAS amount. If the loan falls within the standard MIRAS range then select standard on the main screen. If an adjustment is needed you can select the amount of advance that is entitled to MIRAS, i.e. dual MIRAS of £60,000 or a reduced allowance of £20,000.  A date range and the eligible amounts are required.  Where a mortgage is split into two parts (see set loan A & set variable loan A), care must be taken when allocating MIRAS (especially for the repayment side of the comparison due to the balance reducing).

 

When loan A is the main recipient of MIRAS and any surplus is available to loan B; create a MIRAS amount adjustment and select ALL as the target for the adjustment.  When loan A is the only recipient of MIRAS, select loan A as the target for the adjustment. To enable the standard MIRAS % to be used in your calculation you must ensure that the main screen is set to standard MIRAS, this will enable you to modify the MIRAS amount while applying the standard MIRAS % rates automatically.  If the MIRAS % is to be altered the MIRAS % adjustment must be used as well.

 

When loan B is the main or only recipient of MIRAS, two adjustments MUST be used. The first to set the amount and allocate to loan B, and the second to set the amount available to loan A (zero must be inserted if there is no relief available under loan A).

 

Particular care should be taken when a case involves more than one calculation; MIRAS applies to only the first £30,000 of the loan so the second and subsequent calculations should be set to “No MIRAS” if the first endowment policy covers a debt of £30.000 or more.

MIRAS %

This adjustment allows you to set the MIRAS rate applicable between the dates specified. It should only be used when the standard MIRAS % rates in the system are to be overwritten by a different amount specific to your case. If the standard rate applies no adjustment is needed.

 

Example: Standard miras applied to case

Client requires a miras rate of 15%

Set adjustment Miras % 01/03/91 15.00 01/04/00

Effect: From 01/03/91, the miras rate of 15% will be applied until 01/04/00. This can be seen in the Tax relief column in the view detailed recalc screen

Interest Balance

This allows you to set the amount on which the interest is to be charged. This may be useful for the newer style of mortgages such as Intelligent Finance (Halifax) etc where the client has savings and these help to reduce the amount on which the debt is calculated.  Enter the date range, along with either, a positive figure such as £40,000, the amount which the interest is to be calculated on, or a negative amount i.e. -£10,000, this is deducted from the amount on which the interest is normally calculated (IBB).  This should be used in preference to the Working Balance only if the customer continues to make payments based on the full debt.  This will result in reducing debt amount.

 

Payment Balance

This option can accommodate certain types of deferred or stabilised mortgages and will allow customers to make payments based on a lower or level balance, therefore deferring payment on the rest of the debt/mortgage (does not affect interest charged).  Enter the date range along with the amount e.g. a positive figure such as £30,000; this will calculate the actual payments on the £30,000.  Alternatively enter a negative amount such as - £10,000, this will reduce the figure on which the repayment is normally calculated by the £10,000.  This will result in an increase in the debt outstanding. 

 

Working Balance

This adjustment allows a combination of the interest and payment balance.  The one value is applied and both actions are activated.  This is to accommodate fluctuating balances when the balance varies and payments are made based on the actual balance outstanding.  This is ideal for current/saving/mortgage accounts where the customer is charged based on the difference in their mortgage minus their savings (i.e. IF and other similar mortgages).

 

Interest Balance Cap

When required (for Credit Card Payment Protection Insurance cases or offset accounts) this adjustment ensures that interest is refunded on the correct amount by allowing you to set an interest balance for which the case interest balance will not go above.

 

Example: Interest balance should be set at £2000 from 01/06/22 for 1 year

Set adjustment: Interest balance cap 01/06/22 2000.00 01/06/23

Effect: On detailed recalc screen Balance for interest column will have £2000 from 01/06/22 for the period of 1 year

 

Set loan A balance - Split Loans

This adjustment allows you to break-up the loan into two parts (both can have different interest/MIRAS rates along with different deferred values etc.)  Enter the date and a positive value which will be identified as loan A (loan B will automatically be set to the remainder) or a negative value when Loan A will be set to the outstanding balance minus the value specified.  If you need to reset the loan back into one, enter a fresh adjustment with the new date and enter zero in the value box.

 

This adjustment may be useful in staff cases where two parts of a loan are on different rates (preferential rate on a fixed amount).

 

Enter the specific rate adjustment along with the term - use the loan column to allocate the rate to loan A or B. If a fixed rate is allocated to loan A, then the standard variable rate will be automatically applied to loan B (this can work the opposite way.)

 

Loan A will remain at the value this adjustment sets it to, but Loan B will fluctuate in accordance with payments made. It is therefore recommended that loan B is used to cover any repayment element of the loan.

 

See MIRAS Amount adjustment for treatment of MIRAS with split loans.

 

Set Variable Loan A

This is entered in the same way as Set Loan A Balance but it allows both Loan A and Loan B to fluctuate (Useful for part conversion to Repayment and when other adjustments cause an outstanding balance to reduce, thereby affecting the MIRAS balance).

 

For instance, this can be used when Loan A represents a loan for a house and Loan B a loan for a car.  MIRAS relief would only apply to Loan A and we therefore need to ensure that when Loan A drops below £30,000 that the MIRAS relief reflects this.  If a lump sum is repaid and it needs to be applied to both loan A & B then this adjustment should be used.  This adjustment can be used to apply different rates on the two parts of the loan.

 

Care needs to be taken to ensure that the correct set loan is used to reflect the lenders approach.  You can also alter the payment method on part of the loan e.g. currently all the loan is on an interest only basis but part of the loan is converted to repayment, or currently all repayment and part converts to interest only.  Our understanding from certain lenders is that this adjustment produces a more realistic result than the set loan A balance.

 

Change Calculation (calc) type

This adjustment enables you to conduct a mortgage on a part interest / part repayment basis.  Select the adjustment; enter the date that the change is to take effect along with the element of the loan to be changed i.e. loan A or B, (to do this use the drop down sub menu in the loan box). Using the value -1 will switch to Repayment and -2 will switch to Interest Only. If a value of 0 is entered in it will change the repayment type from the existing to the alternative.  A description can be useful to describe what the repayment type has been changed to.

When used with the Set Loan A balance adjustment we recommend that the repayment element is conducted under loan B as this part of the loan can alter.

 

Example: Case has a split where loan A is set to 40,000 and the remainder is set to loan B (31,680). Loan B is to be changed to repayment

Set adjustment: Change calc type 07/03/22 -1 Loan B

Effect: From 07/03/22 the loan B calculation type will change to repayment. This effect can be seen in the view detailed recalc screen in the balance for interest column and the net payment column.

 

Payment Rate %  

This adjustment will help with deferred mortgages where the customer made payments based on interest calculated at a different rate to that charged to the mortgage.  When using this adjustment enter the date range along with a value: if you enter a positive value e.g. 10, the system will calculate the interest element of the repayment based on the 10.  If you want to reduce the normal rate by 3, enter a negative value e.g. -3.  This adjustment will result in the mortgage balance increasing. With most deferred schemes it will be necessary to also add the payment balance adjustment to enable you to gain the most accurate deferred calculation.

 

Payment rate difference %

This adjustment performs the same function as the payment rate % adjustment.

The difference is that where the previous adjustment replaced the interest rate used in the calculation, this adjustment amends the standard variable rate applied to the account at the time by a percentage of its value.

 

E.g. a positive value of 20% will reduce the actual rate by ¹/₅ of its true value i.e. 5% down to 4%.  This amended rate is used to calculate the interest element of the repayment.  The interest charged to the account will be at the full rate, thus resulting in the mortgage balance increasing. With most deferred schemes it will be necessary to also add the payment balance adjustment to enable you to gain the most accurate deferred calculation.

 

Please note that in this adjustment if you state a negative value i.e. -10% it will result in an additional 10% being added to the charged rate. When inputting details you do not enter the % sign.

 

Payment Amount %

This adjustment is used for deferred rate mortgages or offset mortgages where the amount paid is a percentage of the amount due. A start and end date is required. 

 

Example: Customer paid 70% of the amount due in 01/03/2020 for 3 months.

Set adjustment payment amount % 01/03/20 70 01/06/20.

Effect: For months 3, 4 and 5 of 2020, the payment is reduced to 70%

 

The payment balance adjustment may be needed here to produce the correct results.

Payment Miras Int (Diff %)

This adjustment allows you to set the rate to be used for the MIRAS part of a monthly payment. Normally the rate a payment and interest amount are calculated on are the same but by using other adjustments you can alter the rate used when calculating a monthly payment.This may need to be used on some deferred cases.

Example: Set adjustment Payment Miras Int (Diff %) 03/02/91 4.00 03/02/92

Effect: From 03/02/91 monthly payment will  be recalculated using the interest rate of 4% for the MIRAS element.

 

Redress adj before int

This adjustment is used to increase/ decrease the redress amount prior to interest being added. This adjustment is useful when processing FOS case 2, where the premiums plus interest must be included within the redress before interest is applied.

 

Example: Redress calculated at £389.40. Redress tab starts on 11/05/22

Set adjustment Redress adjusted before interest 11/05/22 120

Effect: Redress will be calculated at £509.40 before interest is applied (if any)  

 

Note: The adjustment must be dated the same date as the start of the redress tab. The effect of the adjustment can be seen in the view comparison screen or the redress breakdown screen.

 

Redress adj after Int

This adjustment is used to increase/decrease the redress amount after interest has been calculated. This adjustment is useful when processing FOS case 7, where the outstanding Interest Only balance must be included within the redress with no interest added.

 

Example: Redress calculated at £420 after interest applied

Set adjustment Redress adjusted after interest 01/07/22 100

Effect: Redress will be calculated at £520.00 including interest  

 

Note: The adjustment must be dated the same date as the start of the redress tab. The effect of the adjustment can be seen in the view comparison screen or the redress breakdown screen.

Set Clawback

This adjustment is used to set the clawback amount by lenders who apply clawback to their interest only payments. A start date and amount is required.

 

Example: Lender requires £1500 to clawback

Set adjustment Set Clawback 01/03/22 £1500

Effect: From 01/03/22, payments seen in net payment column on view detailed recalc screen will adjust to recover the amount set.

Instant Override

This adjustment allows users to override the lender specific timing for which override adjustments are applied to the mortgage. During the time period this adjustment is applied, all overrides will be applied immediately and can be used when processing Payment Protection Insurance (PPI) complaints.

 

Example:  Case requires 3 overrides to be applied promptly on 11/03/23, 14/05/23 and 01/06/23

Set adjustment instant override 01/03/23 0.00 01/07/23

Set adjustment override 11/03/23 350.00, 14/05/23 150.00 and 01/06/23 280.00

Effect: Lender specific timings will not apply to all  three overrides and will be applied to net payment column instantly. This can be seen on the view detailed recalc screen.

Set Term

This adjustment is used to change the term of a case either for the whole balance or for a particular loan if a split has been created. This can be used  for an instance when Payment Protection Insurance is linked to a mortgage or loan but on a shorter or a longer term basis. This adjustment  will allow two elements (Loan and PPI) to be allocated the different terms. The value must be entered as months (e.g. 60 for 5 years) on the date that you want it to start.

 

Example: Loan B requires a short term of 4 years from 01/02/24

Set adjustment Set term 01/02/24 48.00 Loan B

Effect: Loan B will be set to have a term of 4 years from 01/02/24 

Premium Claim

This adjustment is used when a claim has been upheld within a PPI calculation to acknowledge the claim being paid.  The adjustment works in a similar way to the Surrender Value adjustment within a Mortgage Endowment complaint case, where the value is deducted from the result at the end of the calculation.

 

Example:  Calculation has redress due of £29,910

Set adjustment Premium claim 11/04/24 319.00

Effect: The calculation summary comparison will have the statement 'Total on 11/04/24 is reduced by a premium claim of £319.00, leaving a balance of £29,591.00'. Redress will be £29,591.00.

The view detailed recalc screen does not show the effect of the adjustment.

No Premiums

This adjustment can be used to indicate when a premium has not been paid.  During the period this adjustment is applied, any premiums will be taken off of the calculation e.g.  if a customer has not  made any payments during a claim period. This ‘No Premiums’ adjustment works in a similar way to the ‘Missed Premiums’ adjustment for a mortgage case.

 

Example: Case has a regular premium where customer is paying £39 every month. Customer made a claim for the three months of February, March and April 2019 therefore will require a no premiums adjustment.

 

Set adjustment No premiums 01/02/19 0.00 01/05/19

Effect: For February, March and April there will not be any premiums registered on the account.

Monthly income

This adjustment is used to specify a monthly income from a fund that the customer received. To add a monthly income the date period the customer received the income should be entered alongside the amount they received.

 

Example: Set adjustment Monthly income 01/03/22 250.00 01/08/22

Effect: Detailed recalc screen will show -250 in Payment/withdrawal column on a monthly basis until 01/08/22

 

 

Please Note: The monthly income adjustment shows on the rework screen on a monthly basis but doesn't have an effect on the number of units the customer holds or the value of their investment until the end of the case. Care must to be taken when deciding whether the user receives  an income from their fund or if they are making a withdrawal and a withdrawal adjustment is needed to ensure adjustment matches what happened in real life.

 

4 weekly income

This adjustment is used to specify a 4 weekly income that the customer received from their fund. To add this adjustment the date period the customer received the income should be entered alongside the amount they received.

 

Example: Set adjustment 4 weekly income 01/03/22 250.00 01/08/22

Effect: Detailed recalc screen will show -250 in Payment/withdrawal column on a 4 week basis until 01/08/22

 

Please Note: The 4 weekly income adjustment shows on the rework screen on a 4 week basis but doesn't have an effect on the number of units the customer holds or the value of their investment until the end of the case. Care must to be taken when deciding whether the user receives  an income from their fund or if they are making a withdrawal and a withdrawal adjustment is needed to ensure adjustment matches what happened in real life.

 

Quarterly income

This adjustment is used to specify a quarterly income that the customer received from their fund. To add a quarterly income the date period the customer receieved the income should be entered alongside the amount they received.

 

Example: Set adjustment Quarterly income 01/03/22 250.00 01/03/23

Effect: Detailed recalc screen will show -250 in Payment/withdrawal column on a quarterly basis until 01/03/23

 

Please Note: The quarterly income adjustment shows on the rework screen on a quarterly basis but doesn't have an effect on the number of units the customer holds or the value of their investment until the end of the case. Care must to be taken when deciding whether the user receives  an income from their fund or if they are making a withdrawal and a withdrawal adjustment is needed to ensure adjustment matches what happened in real life

Annual income

This adjustment is used to specify an annual income that the customer received from their fund. To add an annual income the date period the customer received the income should be entered alongside the amount they received.

 

Example: Set adjustment Annual income 01/03/22 350.00 01/03/25

Effect: Detailed recalc screen will show -350 in Payment/withdrawal column on an annual basis until 01/03/25

 

Please Note: The annual income adjustment shows on the rework screen on an annual basis but doesn't have an effect on the number of units the customer holds or the value of their investment until the end of the case. Care must be taken when deciding whether the user receives an income from their fund or if they are making a withdrawal and a withdrawal adjustment is needed to ensure adjustment matches what happened in real life.

Single Premium PPI

This adjustment is used in PPI cases where there is a one off premium and the amount specified is added to the balance for interest. The to date is not required therefore for multiple premiums, multiple rows of adjustments will need to be added. 

 

Example: Set adjustment Single Premium PPI 10/03/22 1400.00

Effect: Detailed recalc screen will show £1,400 added to Balance for Interest column on 10/03/22

Regular PPI Premium

This adjustment is used in PPI cases where there is a regular premium. The to date is required as this is for a recurring premium.

 

Example: Set adjustment Regular PPI Premium 10/03/22 140.00 10/08/22

Effect: Detailed recalc screen will show £140 in the Net Payment column on a monthly basis from 10/03/22 until 10/08/22.

Force capital redress

This adjustment overrides the system set up to force the use of the capital balance for a loan. Some loan methodologies add interest at the start of the loan meaning the balance contains capital and interest. This option will ensure the capital amount is used for redress calculations. A start date and end date are required for this adjustment.

 

Force balance redress

This adjustment overrides the system set up to force the use of the outstanding balance for a loan. Some loan methodologies add interest at the start of the loan meaning the balance contains capital and interest. This option will ensure the outstanding balance including interest is used for redress calculations. A start date and end date are required for this adjustment.

 

Min payment amount

This adjustment is primarily for credit cards where a minimum payment is required. Setting an amount will ensure system payment does not drop below this amount. Note that MIRAS will affect this value as it takes affect after this is calculated.

 

Example: Set adjustment Min payment amount 01/02/22 200.00 01/02/23

Effect: From 01/02/22, system calculated payment will not drop below £200.00 until 01/02/23. If there are any instances where it drops below £200.00, the payment will be replaced with £200.00 (the amount set).

 

Min payment balance %

This adjustment is primarily for credit cards where a minimum payment % is required. It will set the minimum amount to pay back. A start date, value and end date are required for this adjustment.

 

Example: 01/06/20 Balance: 100,000 

Set adjustment Min payment balance % 01/06/20 0.80 01/11/20

Effect: The view detailed recalc screen will show a payment of £800 for 01/06/20 and then a payment of 0.8% of the balance until 01/11/20 where it will show a standard system payment. 

 

Note that MIRAS will affect this value as it takes affect after this is calculated.

Set system payment

This adjustment allows the user to set an amount that replaces the payment created by the system. Note that this is different to Set Mortgage payment or other adjustments as it is used as a replacement for the system payment and it does not view any system payment as an under or over payment but rather the expected payment.

 

Example: Set adjust Set system payment 21/04/21 145.00 21/11/21

Effect: On the view detailed recalc screen the Net Payment column will show £145 on a monthly basis from 21/04/21 until 21/11/21.

Override (use payment)

This adjustment will either use the current system generated payment or the payment specified using 'set system payment'. The value should match the system payment, any amount specified will be ignored. A start date and a value are required for this adjustment.

 

Example: Set adjustment Override (use payment) 12/06/22 0.00

Effect: In the view detailed recalc screen an additional payment will show on the 12/06/22 in the net payment column. No amount was specified in the adjustment so the payment will be the system generated payment or the payment set if a set system payment adjustment exists.

 

Accrued fee (use payment)

This adjustment will either use the current system generated payment or the payment specified using ‘set system payment’ and apply it as an accrued fee. The value should match the system payment, any amount specified will be ignored. This can be used where a payment is reversed so a mortgage system would expect payment and then 2-3 days later when not received a reversal would be made. A start date is required for this adjustment.

 

Example: Current payment: £129

Current balance: £89,100

Set adjustment Accrued Fee (use payment) 01/07/22 0.00

Effect: On 01/07/22 balance will be £89,229.00

Set arrears balance

This adjustment will set an amount for the arrears balance when used on a capital and interest calculation. This will adjust the repayments to reflect an interest only arrears balance on the account. A payment recalculation will be required in order for this adjustment to take effect. This can be in the form of an interest rate change or a forced recalculation adjustment. A start date and amount is required for this adjustment, an end date is not.

 

Example: Set adjustment Set arrears balance 01/03/24 389.00

Effect: The arrears balance column will be set to £389 from 01/03/24 and once a forced recalculation adjustment or interest change is applied the payment will change to reflect this. Any subsequent adjustments e.g. missed/under payments will contribute to this arrears balance.

Adjust IBB balance

This adustment will alter the interest bearing balance (IBB) by the value specified. A positive value will add to the IBB and a negative value will take away from the IBB. A start date and an amount are required for this adjustment.

 

Example: Set adjustment Adjust IBB balance 06/02/24 89,433.00

Effect: In the view detailed recalc screen the Balance for Interest will increase by £89,433.00 on 06/02/24. 

 

Please Note: The effect of the Adjust IBB can be altered by the lender setup so extra care needs to be taken to ensure the correct value is achieved when using this adjustment.

Adjust Payment Balance

This adjustment works similar to the set payment balance adjustment but allows you to increase/reduce the balance used to calculate repayments. A start date, amount and end date are required for this adjustment.

 

Example: Set adjustment Adjust payment balance 03/03/22 10,000 03/06/22

Effect: In the view detailed recalc screen on 03/03/22, payments will increase since the payment balance has been increased by £10,000.00. This will be until 03/06/22. Alternatively, if a negative amount was entered, the payment balance would reduce and payments would be lower.  The only change that can be seen on screen is in the net Payment column.

No calculation

When using this adjustment a zero result will be displayed in the rework for the date period that it is set.

Allow Zero Balance

If the balance of a case reaches zero during the period that this adjustment is applied the calculation will continue however payments will stop and the interest charges will not be applied. Typically Redress Manager would halt the calculation at this point and you would see a warning message when trying to view any recalc or summary screen.

 

Example: A case balance reaches zero  on 13/08/23 and there are no more entries on the view detailed recalc screen after that point

Set adjustment Allow zero balance 01/08/23 0.00 01/03/24

Effect: Case balance still reaches zero on 13/08/23 however user is now able to see several rows of calculation until 01/03/24. Payments will be 0.00 and interest charged will be 0.00.

 

Note that you will need an additional ‘Allow Zero Balance’ adjustment row for each tab that you wish to apply the adjustment for.

Allow Negative Balance

If the balance of a case enters a negative state during the period that this adjustment is applied the calculation will continue however payments will stop and the interest charges will not be applied. Typically Redress Manager would halt the calculation at this point.

 

Example: A case balance enters a negative state  on 01/09/23 and there are no more entries on the view detailed recalc screen after that point

Set adjustment Allow negative balance 01/09/23 0.00 01/03/24

Effect: Case balance still enters negative state on 13/08/23 however user is now able to see several rows of calculation until 01/03/24 and Balance (Period End) will show negative entries. Interest charged will be 0.00.

 

Note that you will need an additional ‘Allow Negative Balance’ adjustment row for each tab that you wish to apply the adjustment for.

Disallow Negative Interest

This adjustment is used with the ‘Allow Negative Balance’ adjustment. Any negative interest applied to a balance would be changed to zero.

No Recalc

When this adjustment is applied, for the period that it is applied, Redress Manager will not recalculate monthly payments. A start date and end date are required for this adjustment, an amount is not.

 

Example: Set adjustment 01/11/21 0.00 01/09/22

Effect: During the period this adjustment is applied, any interest rate changes or ad hoc payments will not affect the payment amount. The payment amount will stay the same and will not be recalculated.

 

Note that you will need an additional ’No Recalc’ adjustment row for each tab that you wish to apply the adjustment for.

Merge Split IBB

This adjustment is used if a Loan B is removed from a case while this adjustment is applied. The result will be that interest bearing balances are added together rather than resorting to Loan A’s IBB only. This will ensure that the IBB's are merged. This adjustment should be used in conjunction with a set loan a balance set to 0.

 

Example: Case has split created previously

Set adjustment Merge split IBB 12/04/23 0.00 12/05/23

Set loan A balance 01/04/23 0.00

Effect: The split will end and the IBB's will be merged together on 12/04/23

 

Note: Before using this adjustment please speak to Exasoft to understand the correct way in which this adjustment should be used.

Set Balance

When using this adjustment, the balance for interest will be set to the amount specified. A date and an amount is required for this adjustment, an end date is not.

 

Example: Case starting balance is £45,000

Set adjustment Set balance 01/05/22 41,850.00

Effect: On view detailed recalc screen, the Balance for Interest will be £41,850 on 01/05/22.

Note: If a split is present during the period the adjustment is applied, the balance for Loan B would be affected.

Adjust balance

When using this adjustment, the outstanding balance will be altered by the +/-amount specified. A date and an amount is required for this adjustment, an end date is not.

 

Example: Case starting balance is £56,000

Set adjustment Adjust balance 03/07/22 -7,000.00

Effect: On view detailed recalc screen, the Balance for Interest will be reduced by 7,000 on 03/07/22.

 

Note: If a split is present during the period the adjustment is applied, the balance for Loan B would be affected.

Use current term

This adjustment will override any system parameters and use  the term specified as a value for calculating the payment during a payment calculation. A start date, value and end date are required for this adjustment. (Value would indicate months.)

 

Example: Set adjustment  Use current term 21/03/21 248.00 21/03/22

Effect: The calculation will use the term specified of 248 months ( 20 years 8 months) from 21/03/21 until 21/03/22.

 

Payment received

This adjustment is used to show a credit against the credit card balance. a net payment entry will be shown for the date specified. This net payment will show a balance reduction.

 

Example:

(Before)

01/01/2010: Net Payment - 0

01/01/2010: Balance - 10000

 

Set Adjustment Payment Received 01/01/10 -1000.00

 

Effect: 01/01/2010: Net payment - 1000

01/01/2010: Balance – 9000.

Insurance premium

This adjustment will show a debit against the credit card balance relating to a charge for PPI insurance. A start date and a value is required for this adjustment.

 

Example: Set adjustment Insurance premium 17/05/22 39.99

Effect: On the detailed rework screen the balance for interest column will show an increase of £39.99 on 17/05/22.

 

Note if a minimum payment % is set this will be affected by this adjustment.

 

Interest

This adjustment will show a debit against the credit card balance relating to the monthly interest charge. A start date and an amount are required for this adjustment.

 

Example: Set adjustment Interest 01/05/22 387.21

Effect: On the detailed rework screen the balance for interest column will show an increase of £387.21 on 01/05/22.

 

Purchase

This adjustment will show a debit against the credit card balance relating to ta purchase made by the consumer. A start date and an amount are required for this adjustment.

 

Example: Set adjustment Purchase 01/06/22 389.99

Effect: On the detailed rework screen the balance for interest column will show an increase of £389.99 on 01/06/22.

 

Refund

This adjustment is used to show a credit against the credit card balance relating to a refund from the card provider. A start date and an amount are required for this adjustment.

 

Example: Set adjustment Refund 01/07/22 120.99

Effect: On the detailed rework screen the balance for interest column will show a decrease  of £120.99 on 01/07/22 and the net payment column will show £120.99.

 

Late payment fee

This adjustment will show a debit against the credit card balance relating to the consumer making a late or missing a monthly minimum payment. A start date and an amount are required for this adjustment.

 

Example: Set adjustment Late payment fee 11/03/23 99.00

Effect: On the detailed rework screen the balance for interest column will show an increase of £99.00 on 11/03/23.

 

Over limit fee

This adjustment will show a debit against the credit card balance relating to the consumer exceeding their agreed credit limit.  A start date and an amount are required for this adjustment.

 

Example: Set adjustment Over limit fee 21/04/23 99.00

Effect: On the detailed rework screen the balance for interest column will show an increase of £99.00 on 21/04/23.

 

Cash advance fee

This adjustment will show a debit against the credit card balance relating to the consumer making a cash withdrawal.  A start date and an amount are required for this adjustment.

 

Example: Set adjustment Cash advance fee 13/08/23 99.00

Effect: On the detailed rework screen the balance for interest column will show an increase of £99.00 on 13/08/23.

 

Set NIBSA

This adjustment is used to set the value in the NIBSA (Non interest bearing sub account) column. A start date and a value are required for this adjustment.

 

Example: Set adjustment Set NIBSA 01/01/24 8,900.00

Effect: In the view detailed recalc screen the NIBSA column will be set to £8,900.00 from 01/01/24.

 

Adjust NIBSA

This adjustment is used to modify the value in the NIBSA (Non interest bearing sub account) column. A start date and a value are required for this adjustment. A positive value will increase the amount in the NIBSA column, a negative value will decrease the amount.

 

Example: Set adjustment Adjust NIBSA 07/02/22 35.00

Effect: In the view detailed recalc screen the NIBSA column value will be increased by £35.00 on 07/02/22.

 

Source arrears

This adjustment is used to set an amount of arrears on an account and requires a start date and a value. This will not affect the arrears column but will be taken into account if using the system adjustment generator.

 

Arrears interest holiday

This adjustment allows you to set a period where there is no interest applied to the arrears. A start date, value and end date are required for this adjustment.

Example: Set adjustment Arrears interest holiday 10/03/24 0.00 10/06/24

Effect: In the view detailed recalc screen the arrears balance will not have any interest applied from 10/03/24 until 10/06/24.

 

No arrears interest

This adjustment allows you to specify a period where no interest will be applied to arrears. A start date and end date are required.

Example: Set adjustment No arrears interest 01/03/21 0.00 01/09/21

Effect: In the view detailed recalc screen from 01/03/21 until 01/09/21 no interest will be calculated on the arrears balance.

 

NIBSA fee

This adjustment is used to add a fee to the NIBSA (Non interest bearing sub account) column. A start date and an amount are required for this adjustment. A positive amount will increase the value in the NIBSA column, a negative amount will decrease the value in the NIBSA column.

 

Example: Set adjustment NIBSA fee 01/02/20 150.00

Effect: On 01/02/20 a fee of £150.00 will appear in the NIBSA column in the view detailed recalc screen.

 

NIBSA arrears fee

This adjustment is used to add an arrears fee to the NIBSA (Non interest bearing sub account) dependent on the arrears balance and the length of time the account has been in arrears. This can be set in the system setup for the lender where the following options are used:

Arrears processing Basic: The minimum value sets how much the arrears balance needs to be at. The options are >0, 50%, 1 months, 2 months, 3 months, 4 months and 5 months’ worth of payments.

 

The minimum period sets how long the account needs to be in arrears for. The options are Any, 1 month, 2 months, 3 months, 4 months, 1 full month, 2 full months, 3 full months and 4 full months.

 

Example: The minimum value is set to 1 month and the minimum period is set to 1 month.

 

Set adjustment NIBSA arrears fee 01/08/23 120.00

Effect: From the date the NIBSA arrears fee adjustment is applied the system will check if there is an arrears amount of 1 month’s payment and if the account has been in arrears for more than 1 month. If these conditions are met, a NIBSA arrears fee will be applied to the account on 01/08/23 of £120.00. If the conditions are not met, the fee will not be applied.

 

NIBSA field agent fee

This adjustment is used to add a field agent fee to the NIBSA (Non interest bearing sub account) dependent on the arrears balance and the length of time the account has been in arrears. This can be set in the system setup for the lender where the following options are used:

Arrears processing Field agent: The minimum value sets how much the arrears balance needs to be at. The options are >0, 50%, 1 months, 2 months, 3 months, 4 months and 5 months’ worth of payments.

 

The minimum period sets how long the account needs to be in arrears for. The options are Any, 1 month, 2 months, 3 months, 4 months, 1 full month, 2 full months, 3 full months and 4 full months.

 

Example: The minimum value is set to 1 month and the minimum period is set to 1 month.

 

Set adjustment NIBSA field agent fee 11/03/23 115.00

Effect: From the date the NIBSA field agent fee adjustment is applied the system will check if there is an arrears amount of 1 month’s payment and if the account has been in arrears for more than 1 month. If these conditions are met, a NIBSA field agent fee will be applied to the account on 11/03/23 of £115.00. If the conditions are not met, the fee will not be applied.

 

NIBSA solicitors fee

This adjustment is used to add a solicitors fee to the NIBSA (Non interest bearing sub account) dependent on the arrears balance and the length of time the account has been in arrears. This can be set in the system setup for the lender where the following options are used:

Arrears processing Solicitor: The minimum value sets how much the arrears balance needs to be at. The options are >0, 50%, 1 months, 2 months, 3 months, 4 months and 5 months’ worth of payments.

 

The minimum period sets how long the account needs to be in arrears for. The options are Any, 1 month, 2 months, 3 months, 4 months, 1 full month, 2 full months, 3 full months and 4 full months.

 

Example: The minimum value is set to 1 month and the minimum period is set to 1 month.

 

Set adjustment NIBSA Solicitors fee 21/04/22 90.00

Effect: From the date the NIBSA solicitors fee adjustment is applied the system will check if there is an arrears amount of 1 month’s payment and if the account has been in arrears for more than 1 month. If these conditions are met, a NIBSA solicitors fee will be applied to the account on 21/04/22 of £90.00. If the conditions are not met, the fee will not be applied.

 

 

*The System Generate icon is always available in the adjustment setup of a multi-lender case.

 

Please review the other parts of the Adjustments section for more information on date requirements and ranges.

 

Related Topics

Adjustments