Net Asset Value(s)

UK Mortgages Ltd - Net Asset Value(s)

PR Newswire

London, February 16

UK MORTGAGES LIMITED(a closed-ended investment company incorporated in Guernsey with registration number 60440)

LEI 549300388LT7VTHCIT59

Final Net Asset Value

UKML RNS: Commentary accompanying UK Mortgages Limited December 2020 NAV

The UKML NAV per share was calculated for December 2020 month end at 81.79 pence per share, an increase of 0.36 pence per share.

Alongside the regular monthly income generated by the Company’s investments, the key drivers for the movement in the NAV for this period have been the updated IFRS 9 Expected Credit Loss (ECL) provisioning assessment and the hedge effectiveness calculations both of which occur semi-annually. With regard to ECL provisioning, there has been a significant reduction in the number of loans taking a payment holiday, with current levels having fallen to a fraction of the amount at the previous calculation in June 2020, which essentially coincided with the peak take-up. The effect of this has been to partially reduce the required provisioning, despite continuing to model an enhanced level of stress on loans where the borrowers have resumed payments following the end of a payment holiday. In addition, the results of hedge effectiveness calculations have continued to show a high level of effectiveness, with a net small improvement.

Elsewhere, the positive impact of the above factors was partially offset by several one-off fees relating to the recent shareholder vote.

Meanwhile, the Company’s investments continue to perform in line with expectations.

More details will be available in the Company’s next factsheet to be published shortly.

Enquiries:

Northern Trust International Fund Administration Services (Guernsey) Limited

Andrew Bonham 44 (0)1481 745302

Date: 16 February 2021