Buy-to-let RMBS continue to improve

The performance of the UK buy-to-let residential mortgage-backed securities market continued to improve in the three-month period leading up to February 2012, according to Moody’s.

In the three-month period to February 2012, the 90+ day delinquency trend decreased to 1.55%, from 1.70% in November 2011.

During this period, outstanding repossessions and cumulative losses remained stable at 0.1% and 0.5%, respectively, in November 2011.

Moody’s annualised total redemption rate trend averaged 5.5% in the three-month period to February 2012.

As of February 2012, the 29 Moody’s-rated UK buy-to-let RMBS transactions had an  outstanding pool balance of £37.2bn. Compared with the £37.7bn pool balance for the same period in the previous year, this constitutes a 1.5% year-over-year decrease.