View more on these topics

UK non-conforming RMBS remain stable

The performance of UK non-conforming residential mortgage-backed securities remained stable in the three months to August 2013, according to the latest figures released by Moody’s Investors Service.

Moody’s 90+ day delinquency index looks at the percentage of non-conforming mortgages with UK RMBS which have been in arrears for three months or longer. This decreased from 16.1 per cent in May 2013 to 15.8 per cent in August 2013, while outstanding repossessions dropped to 0.6 per cent from 0.7 per cent in the same period.

Weighted average loss severity – which measures the average loss on properties repossessed and sold as a result of payment default – was 28.3 per cent in August 2013, siginficantly lower than its June 2010 peak of 33.4 per cent.

Cumulative losses on residential non-conforming mortgage-backed securities rose by just 10 basis points to 2.5 per cent of the original balance between may and August 2013, while outstanding repossessions decreased from 0.7 per cent of the non-conforming sector to 0.6 in the same period.

However, Moody’s asserts that future performance remains uncertain due to low redemption rates – 5.5 per cent in August 2013 compared with pre-2009 levels of between 20 and 40 per cent – with the ratings agency saying the lower rates of redemption mean portfolios will remain outstanding for a “significant time”.

Buy-to-let RMBS also showed stable performance in the three-month period ending in August 2013 with the 90-plus day delinquency index relatively unmoved at 0.88 per cent compared with 0.90 per cent in the three months ending May 2013.

Outstanding repossessions decreased from 0.13 per cent in May 2013 to 0.11 per cent in August.

Recommended

John-Eastgate-700.png

There needs to be more to the housing recovery than Help to Buy

The Victorian economist, Alfred Marshall, once said: “We might as well reasonably dispute whether it is the upper or under blade of a pair of scissors that cuts a piece of paper, as whether value is governed by demand or supply.” Consider this in the context of Help to Buy and other housing stimuli. Some […]

MS Leader: Bank’s FLS bombshell

The Bank of England’s announcement last week that it was ending the Funding for Lending Scheme for residential mortgages in 2014 has certainly taken the entire market by surprise. At its heart seems to be a genuine concern on the Bank’s part that the housing market is overheating. In an interview with The Guardian on […]

Wales to launch Help to Buy in January

Wales’ version of the Help to Buy equity loan scheme will launch in January. Last week, housing minister Carl Sargeant announced the £170m scheme, called Help to Buy Cymru, will support the purchase of around 5,000 new homes in Wales during the next two and a half years. Sargeant says: “The Help to Buy – […]

MS-4Dec-Index-ALIGNRIGHT.jpg

Lucky No.13

Few in the mortgage industry would have guessed that 2013 would end on such a positive note and even the most superstitious adviser can find reasons to be cheerful and express hope for a prosperous 2014

10 September thumbnail

Johnson Fleming set to hold auto-enrolment support webinar

Two years since the process of auto-enrolment began, the looming re-enrolment deadline provides the perfect opportunity to assess whether the support you have in place, which may well have been hastily selected at the start, is fit for purpose. Johnson Fleming is holding a webinar on 10 September at 11:00 to discover the key issues and concerns you should consider when thinking about your current support options.

Newsletter

News and expert analysis straight to your inbox

Sign up