Bluestone Mortgages has signed a three-year deal with Hometrack to identify climate change risks within its mortgage portfolio.

As part of the partnership, Hometrack will review Bluestone’s back book to assess the potential impact of climate change.

Hometrack will also forecast how risk is set to develop across Bluestone’s portfolio using flood, ground and energy risk data.

The data will help Bluestone to shape its risk appetite, as well as establish core capital calculations.

The partnership comes as financial providers must begin reporting climate change risks to the regulator after the Bank of England asked lenders to assess their resilience. 

Bluestone Mortgages chief executive officer Steve Seal says: “Within the context of a changing world, thanks to the climate change risk analysis and information provided by Hometrack, we will be able to better understand risk and opportunity in the current market.”

Hometrack vice president of commercial George Robbins adds: “One of the biggest challenges facing lenders is changing regulation around climate change, and this is as pertinent to specialist lenders as it is to the main market.”