View more on these topics

Fitch sees arrears rise by 11.63% in UK RMBS

Fitch Ratings has discovered an upward trend in arrears and repossessions in UK residential mortgage backed securities in Q2 2008.

Arrears rose 11.63% in the quarter to now to account for 12.1% of the balance of all mortgages included in the Fitch UK non-conforming index – equivalent to approximately £3.4bn.

Loans currently in possession rose to 2.18% from 1.78%.

This continues the rise seen over the last year.

Peter Dossett, associate director of Fitch’s RMBS team, says: “Loans in arrears continue to increase as a proportion of outstanding non-conforming mortgages.

“This is being driven by greater adverse selection than seen in the past, where borrowers who are able to refinance are doing so, leaving the non-performing loans in the pool and therefore increasing the pressure on the transactions.”

Fitch says it will continue to monitor the performance of the UK non-conforming RMBS over the next quarters to see the effects of a challenging market environment on each transaction.


Recommended

Broker website to search network market

Brokers looking to choose a network can now use a single website to research the network market, with networks pitching to brokers for their business.

Skipton offers 95% LTV deals

Skipton is to offer first-time buyers 95% LTV deals through its Mutually Exclusive scheme.From September 15 its account holders can access the deals if they or a family member put 20% of the property’s value into one of the mutual’s savings accounts.

Newsletter

News and expert analysis straight to your inbox

Sign up