William Chalmers: I think the short answer is no, Raul. As we look at the buy-to-let portfolio, it’s obviously one of our portfolios businesses. It’s not seeing arrears trends that are significantly different to what we’re calling out in the materials that we provided today. As you know, today, we called out a mortgage portfolio that is performing well inside of our 2019 new to arrears experience. The heritage portfolio is a little different from that, not terribly much so. But the reason why we put the site is just to provide further color, if you like, on that point. Buy-to-let isn’t a particular portfolio that we’d call out as being any different than anything else that’s going on. The one point I would make, Raul, in before concluding is more of a flow point actually, which is, I think, because of governmental changes, perhaps because of the rate environment and so forth, we are seeing buy-to-let as a proportion of new business on the portfolio go to very low levels.
And so it’s much more about the residential portfolio right now than it is about the buy-to-let, new to lending in buy-to-let is much smaller than it used to be.
Raul Sinha: Got it. Thank you.
William Chalmers: Thanks, Raul.
Operator: Thank you. Our next question is from Rohith Chandra-Rajan from Bank of America. Your line is unmuted. Please go ahead.
Rohith Chandra-Rajan: Hi. Good morning. Thank you very much. I had a couple, please. The first one was just a follow-up actually on the deposit beta. So you sort of had said historically, you thought over time, a combination of pricing and mix would move towards 15% and it sounds like you just reiterated that, William. But, obviously, we’re now talking about materially higher policy rates than we were all expecting previously. So that implies a much wider deposit spread than you might have been anticipating before. Just wondering if that’s the correct read of that or whether actually over time you might think that deposit beta could overshoot the 50%. So that was the first one. And then just coming back to the TNAV and thinking about the short-term, if I look at five-year rates today versus at the end of June, that would imply something like a third of the cash flow hedge reserve impact in Q2 might actually flow back in Q3.
So I just wanted to check if that was the right way to think about that, please, as well as the kind of maturities you talked about before? Thank you.
William Chalmers: Yeah. Yeah. Thanks, Rohith. I’ll answer both, but Charlie, we want to add, I think, on the deposit point in particular, Rohith. So let me just start on that hand over to Charlie and then come back on the TNAV afterwards. In terms of the deposit beta, it’s worth — first of all, just saying that this is a cumulative number that is given. So when we talk about a 50% deposit beta, it is cumulative over time. What that means is in the early stages of rate rises, as you know, essentially all banks sought to rebuild the margin from what had been a very compressed level during the zero interest rate period. Not that much of the initial rate rises were passed on as those rate rises have increased, so the cumulative beta has moved up.
