Our estimation for the annualised return over the entire lifetime of the loans. It is calculated at the time loans were acquired by investors.
The expected lifetime return takes a large number of factors into account, including:
A loan’s term, interest rate and risk band.
The criteria used to determine a loan’s eligibility and how it is priced.
The projected performance of loans purchased from other investors on our secondary market (including the impact of the 1.25% transfer payment paid by the buyer of the loan).
Historical performance of similar loans
The expected annualised lifetime return is shown as a range because there is always a degree of uncertainty when estimating future loan performance.