Virgin Money partners with Hometrack to identify back book risk from climate change

Virgin Money partners with Hometrack to identify back book risk from climate change

Provided in partnership with Ambiental and Terrafirma, as well as assessing the risk of climate change in the near term, Hometrack’s Risk Insights will assess how risk is forecast to develop across Virgin Money’s portfolio over time. 

Mark Thundercliffe, chief risk officer at Virgin Money, said: “The climate change risk analysis along with other valuable insight from Hometrack that we will now receive will mean Virgin Money can better understand the risks and opportunities in the current market while also planning accordingly for the future.”

George Robbins, VP commercial at Hometrack, said: “Changing regulation around climate change is one of the biggest challenges facing lenders in today’s market. Indeed, it’s an issue that is set to face the industry for the long term – it isn’t going to dissipate any time soon.

We welcome Virgin Money’s appetite to address this challenge early on and will support them as they gain control of its risk exposure based on our market leading data and analysis.”

The Bank of England has asked banks and building societies to assess the climate change risk to their mortgage book against a number of defined timeline and severity scenarios and to feed back on the findings of the risk assessment. Hometrack’s Climate Change Risk product ‘provides the relevant data and insight to do so.’

Robbins added: “It’s all about 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 whist understanding and mitigating risks for both the lender and the consumer.”