February 2026 Performance Analysis
Portfolio performance in February 2026 reflects continued operational momentum with 954 applications submitted, the highest monthly submission volume of the financial year. Approval rates strengthened to 76.1%, reversing the January dip and positioning the portfolio well into its final quarter target. YTD approvals reached 7,254 loans representing £61.4M in approved credit.
Commission yield remains above target at 3.51%, driven by disciplined pricing in renewables segment and improved retail mix. Pipeline at-risk balances have stabilised after Q4 pressure, with 298 applications in Tier 1 (0-30 days outstanding) indicating healthy cash collection momentum. Lender performance was balanced across the panel, though Lender A and Lender B combined represent 50% of approvals, warranting continued diversification focus.
| Lender | YTD Share | Feb Approvals | Avg Loan Value | Status |
|---|---|---|---|---|
| Lender A | 28% | 213 | £8,750 | Strong |
| Lender B | 22% | 167 | £8,420 | Strong |
| Lender C | 18% | 138 | £8,590 | Stable |
| Lender D | 15% | 114 | £8,320 | Watch |
| Lender E | 10% | 76 | £8,680 | Watch |
| Lender F | 7% | 53 | £8,100 | Monitor |
The lender panel continues to exhibit healthy diversification with Lender A and Lender B collectively accounting for 50% of approvals. Whilst concentration risk is manageable, the gap between top two (28% and 22%) and the remainder warrants strategic attention. Lender C's 18% share is solid; however, Lenders D, E, and F have plateaued, each contributing less than 16% of volume. Lender F's 7% share represents the smallest panel contributor and may warrant review of commercial terms or service level agreements.
February approvals of 726 total across all lenders shows proportional panel utilisation, indicating that waterfall decisioning logic is working as intended. Lender A led with 213 approvals, followed by Lender B with 167. Average loan values across the panel are tightly clustered (£8,100-£8,750), suggesting consistent underwriting standards. Lender D and Lender E have flagged "Watch" status due to recent Q1 submission processing delays in regulatory reviews; ongoing communication with their compliance teams is recommended.
The paid funding rate across the waterfall stands at 88% (approvals to paid), consistent with historical patterns. Signed conversions remain high at 95%, indicating minimal customer friction in the post-approval journey.
Commission yield of 3.51% YTD exceeds the 3.5% target by 1 basis point, delivering approximately £2.15M in commission revenue across £61.4M of approved credit. February's yield of 3.76% was the highest of the financial year, driven by a favourable mix of higher-margin renewables transactions and improved retailer partner pricing discipline. The renewables segment contributed £1.2M in February revenue alone, representing an estimated 52% of month-end approvals by value.
October through November saw yields hover at 3.6%-3.7%, whilst December dipped to 3.28% due to volume-driven discounting to offset the seasonal application decline. January's recovery to 3.42% and February's push to 3.76% confirm that pricing discipline is tightening at portfolio manager level. Home improvement segment yields have stabilised at 3.2%-3.3% (lower margin, higher volume), whilst renewables consistently achieve 3.8%-4.0% (lower volume, higher margin).
Cumulative revenue of £2.15M against a full-year target of £2.32M implies February and March require an average yield of 3.48% to achieve target—well within current performance levels. Current trajectory suggests full-year yield will reach 3.53%-3.55%, beating target by 30-50 basis points.
The top 10 retailers represent 4,020 applications (40.8% of portfolio), indicating a healthy long-tail dynamic. GreenEnergy Solutions leads with 487 submissions, followed by HomeRenewal Partners with 421 and BuildTech Renewables with 398. These three retailers account for approximately 12% of total portfolio volume, suggesting no dangerous concentration at retailer level.
February submissions across the top 10 retailers increased by 18% month-on-month (baseline 187 in January to 220 in February), consistent with the portfolio-wide trend. Four retailers in the top 10 (GreenEnergy Solutions, HomeRenewal Partners, BuildTech Renewables, and HeartPump Installers) are focused on renewables and represent approximately 55% of February's high-yield approvals. The remaining six are distributed across home improvement categories, providing stable base revenue.
Two retailers have shown declining trends: Roofing & Repairs dropped from 276 YTD submissions to only 19 in February, suggesting either market saturation or a shift in their retail strategy. Similarly, Garden Builders UK has stabilised below historical averages. Onboarding conversations are scheduled with both to understand mid-year constraints and explore campaign opportunities.
The at-risk pipeline has stabilised significantly after Q4 2025 pressure. February shows 298 applications in Tier 1 (0-30 days), the best Tier 1 position since October, indicating strong cash collection momentum. Tier 2 (31-60 days) declined to 203 applications, down from 241 in January, suggesting improved working capital efficiency and lender processing speed.
Tier 3 (61-90 days) remains at 132 applications, elevated but stable. This tier comprises applications in active negotiation with lenders or awaiting customer documentation; historical data shows 94% of Tier 3 applications ultimately convert to paid status. Tier 4 (90+ days outstanding) has decreased to 71 applications, the lowest of the financial year, indicating successful resolution of long-standing outliers. The total outstanding balance of 704 applications represents approximately £5.97M in pending approvals.
The stabilisation in outstanding balances post-January dip is attributed to lender onboarding improvements and streamlined retailer handoff processes. Risk appetite remains healthy, with no lenders reporting material underwriting delays. Expected conversion of the current pipeline should deliver approximately 620 additional paid loans by month-end, maintaining momentum toward financial year-end targets.
Submission Momentum & Approval Trends
February submissions of 954 applications represent a 25.8% surge compared to January's 758, recovering from the seasonal post-Christmas dip. This is the strongest monthly volume since October 2025, suggesting retailer momentum ahead of the spring home improvement season. Approval rates also improved markedly to 76.1% in February (vs 69.4% in January), indicating either improved application quality from retailers or optimal lender panel allocation.
The 11-month YTD volume of 9,847 applications translates to an average of 895 per month. The portfolio has maintained momentum throughout the period, with only December dipping below 650 due to year-end resets. If February's pace is sustained, the portfolio could exceed 10,500 applications by March financial year-end, a 12% uplift on prior-year performance (estimated baseline of 9,400).
Average approved loan value remains stable at £8,476 (range £8,340-£9,380), suggesting consistent pricing discipline across both home improvement and renewables segments. The slight elevation in late months (Jan-Feb average £8,945) may reflect seasonal mix shift toward larger-ticket renewables projects.