Having previously accepted a firm's own documents from their accountancy department, the regulator has now shared a new template for firms to complete.
The template, published earlier this week (January 24), includes a three-year forecast of income statements and balance sheets, as well as a detailed breakdown of income and expenditure which breaks down income from different types of mortgage products.
The income breakdown requires brokers to split out revenue generated from first charge, second charge, equity release, and buy-to-let business.
"This is significantly more explicit and wide ranging than anything we have seen before," said Robert Sinclair, chief executive of the Association of Mortgage Intermediaries.
Sinclair said what is new is the FCA providing a standard template, rather than taking accountants' own standard documents.
"What is new is them giving this template explicitly, to assist firms," said Sinclair.
"The expectation is in the rules and guidance, capable of interpretation, but this gives greater clarity and specificity."
Source: The FCA
The trade body boss did say, however, that much of the contents still did match what he has been seeing given the returns required over Covid-19 and annual returns.
"It is also the threshold we have been seeing in order to pass the more stringent gateway introduced in last two years," he added.
ruby.hinchliffe@ft.com
