Chaps payment

How do I choose the correct purpose codes?

When making CHAPS payment for a property purchase or loan, you will be prompted to select a purpose code from a dropdown list provided in your online banking. Simply choose the option that best describes the nature of your property purchase.

What are property transaction codes?

These Codes indicate the specific purpose of a payment related to property purchases or loans, ensuring compliance with regulatory guidelines.

The Property Transaction Codes, along with the explanation of when to use each one, is set out in the table below.

Purpose code	Name	When should I use this code?
HLRP	Property Loan Repayment	When the transaction relates to the part repayment of a property loan or mortgage
HLST	Property Loan Settlement	When the transaction relates to the final repayment of a property loan or mortgage
PLDS	Property Loan Disbursement	When the lender pays funds, in full or part, in relation to a property loan or mortgage
PDEP	Property Deposit	When the transaction relates to payment of the deposit towards the purchase of a property
PCOM	Property Completion Payment	When the transaction is the final payment to complete the purchase of a property
PLRF	Property Loan Refinancing	When the transaction relates to the transfer or extension of a property finance arrangement, without change of ownership of the property

What benefits does ISO 20022 bring?

The main benefit of adopting ISO 20022 is enhanced payment processing efficiency and transparency.

What is a purpose code?

A Purpose Code is 4-letter code which is included within a payment providing information to all recipients in the chain on the purpose of the payment.

The introduction of purpose codes.pdf

What should I do if my payment does not fit any of the six prescribed property purpose codes?

Select the closest match: Choose the code that most closely represents the primary purpose of the payment.
No Rejection risk: Rest assured, your payment will not be rejected solely because a specific property purpose code is not selected. However, choosing the most appropriate code helps ensure accurate processing and reporting.

Who can I contact for more information or help?

If you need further assistance or are unsure about selecting the correct purpose code, please contact your banker or speak to Coutts 24 who will be pleased to help.

Why are purpose codes being introduced?

The introduction of Purpose Codes for CHAPS is being driven by the Bank of England in line with their Policy Statement: Implementing ISO 20022 Enhanced Data in CHAPS. It follows the global changes that are taking place in the payment standards and is intended to create a global standard for payments across banks and financial institutions around the world.

The changes are designed to provide better quality payment data and builds on the Bank of England’s aim to deliver greater payments resilience. You can find out more by visiting the Bank of England website.

Why do I need to choose a purpose code for my property purchase or loan repayment?

The BOE is introducing purpose codes to improve the monitoring and reporting of property related transactions. This helps enhance transparency and compliance with regulatory requirements for property payments.

Property codes for specific payments – examples/guidance
Code	Payment examples
PCOM	Stamp duty & service charge Planning consultants & third-party fees, NHBC certificate costs, indemnity payments
HLST	Option fee
PDEP	The final payment of a property purchase would be PCOM, but if it were a deposit relating to the property purchase, then that would be PDEP
PLRF	Lease extension and freehold claims