Outstanding repossessions remain stable for UK prime RMBS

Wed, 26 Oct 2011

Outstanding repossessions have remained relatively stable for the UK's prime residential mortgage-backed securities (RMBS) market, it has been found.

According to Moody's Investors Service, a low interest rate environment coupled with stability in the wider economy has resulted in the RMBS sector performing well of late.

Figures from the agency suggested a solid showing from the market in the three months to August, while positive signs were also seen in the buy to let RMBS field.

A factor in the results was that outstanding repossessions held firm at 0.1 per cent, while cumulative losses remained balanced at 0.2 per cent.

In addition, buy to let repossessions kept steady at 0.14 per cent, with cumulative losses in this area increasing to 0.45 per cent from 0.4 per cent.

Moody's Investors Service - which, alongside Moody's Analytics, counts Moody's Corporation as its parent company - explained the RMBS sector is looking stable for the time being, predicting a continuation of relatively flat house prices in 2012, while it is not anticipated that unemployment will dip materially below the current level of eight per cent.

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