UK buy to let RMBS performance improves slightly, says Moody’s
The performance of the UK buy-tolet (BTL) residential mortgagebacked securities (RMBS) market improved slightly in the three months ended May, according to the latest indices published by Moody’s.
The 90+ day delinquency rate decreased to 0.64% in May from 0.66% in February, representing a 4% drop, while outstanding repossessions 0.09% in May.
Cumulative losses increased marginally to 0.83% in May from 0.81% in February.
Moody’s annualised total redemption rate decreased to 8.57% in May from 9.01% in February.
New players in the prime mortgage market and pre-crisis legacy assets
at hold the keys to deal issuance for the next 12 months. They accounted for almost half of all newly issued UK RMBS from January 2014 to June 2015, at 15 out of 33 deals (GBP 8.2 bln out of total issuance of GBP 27.9 bln).
Moody’s forecast that UK house prices will rise by up to 5% in 2015, but at a slower pace than in 2014.