The product, which can be integrated into lender’s existing and integrated platforms, uses property valuations data and Hometrack’s valuation model to allow lenders to model present and future climate risk.
It will examine a variety of risks, including flood risk through Hometrack’s partnership with Ambiental, which will provide river flow, rainfall, storm surge and climate change predictions.
The model will include testing for 10 flood scenarios and allow faster risk assessment of lender’s physical assets.
Hometrack’s partnership with Terrafirma will also add ground risk analysis to the product. This includes ground movement, mining, erosion and landslides.
Data on energy performance certificate ratings and property energy efficiency information will also be integrated into the system.
Information from over 50 million valuations per year is also ploughed in to the platform, which can then be overlain with property risks data and help lenders with risk mitigation.
Theo Brewer, analytics and consulting director at Hometrack, said: “We need to drive climate change up the agenda for the mortgage industry and effect change from within.
“For Hometrack and our customers, this really means accurately identifying where, when, how often and how severe climate change related risks are going to develop, as well as devising the appropriate strategies to continue lending whilst understanding and mitigating risks.”
“Our solution is designed to provide lenders with a forensic view of climate change risk, combining scientific expertise across the flood, ground and property value modelling spaces with the ability to seamlessly integrate data and decisioning capability into their mortgage and credit risk platform,” Brewer added.
