|Year of origination||Expected default rate||Actual arrears||Actual default rate|
The expected default rate is arrived at by forecasting actual losses as percentage of the loans made in that year after the recovery of security. Security is obtained in various forms and recovery can takes several weeks or months. This figure represents our best estimates of the eventual loss, however it is not a reliable indicator of future results or actual default rates. These figures provide only a guide to expected performance but cannot take into account the actual performance of individual borrowers or of the property market.
The actual default rate is arrived at after recovery proceedings have been fully concluded as a percentage of the loans made in that year.
Actual arrears are shown as a percentage of the loans made in that year if payments on a loan are in arrear for longer than 90 days.
Past performance is not a reliable indicator of future results.