Post by Landbay on Sept 21, 2015 13:23:13 GMT
On 17th September 2015, we published the results of stress tests that were independently run by MIAC Acadametrics Ltd (MIAC), a leading mortgage industry data, analytics and risk consultancy.
These stress tests were conducted to Bank of England criteria, modelled to highlight how our mortgage book would perform in both a base and stressed economic environment.
The results of the BoE stress testing are, in summary:
BoE base case scenario – assuming the economic conditions expected by the BoE
= average expected loss rate of 0.03%, before interest payments
BoE stressed scenario– assuming GDP down by 3.5%, unemployment rising to 9% and UK house prices falling by 20%
= average expected loss rate of 0.48% before interest payments
NB – Landbay’s contingency fund is currently maintained at 0.60% of loan book, and so would absorb all of these losses.
To date, we are the first peer-to-peer platform to put our loan book through these standardised criteria and to publish the results.
For more information, see our blog here and listen to John Goodall on the London Fintech podcast here
These stress tests were conducted to Bank of England criteria, modelled to highlight how our mortgage book would perform in both a base and stressed economic environment.
The results of the BoE stress testing are, in summary:
BoE base case scenario – assuming the economic conditions expected by the BoE
= average expected loss rate of 0.03%, before interest payments
BoE stressed scenario– assuming GDP down by 3.5%, unemployment rising to 9% and UK house prices falling by 20%
= average expected loss rate of 0.48% before interest payments
NB – Landbay’s contingency fund is currently maintained at 0.60% of loan book, and so would absorb all of these losses.
To date, we are the first peer-to-peer platform to put our loan book through these standardised criteria and to publish the results.
For more information, see our blog here and listen to John Goodall on the London Fintech podcast here