View more on these topics

UK sub-prime RMBS arrears more than double in 12 months

Arrears on mortgages in UK sub-prime residential mortgage-backed securities have more than doubled over the last 12 months.

According to Moody’s latest report into sub-prime RMBS, arrears have increased from 8 per cent in Q1 2008 to 18 per cent in Q1 2009.

It also found that one in five borrowers in these portfolios were more than 90 days delinquent in Q1 2009.

Moody’s senior associate Georgij Ludmirskij says: “Eleven transactions posted 90+ days delinquencies higher than 30 per cent. All vintages and transaction series deteriorated, and delinquencies increased in all transactions during the quarter.”

Among the transactions with the greatest arrears are Lehman Brothers’ Eurosail securities, and Rooftop’s Mansard, ranging between 28 per cent and 32 per cent in arrears.

Moody’s also found that Platform’s Alba, Leek and Great Hall Mortgages remained the series with the lowest levels of delinquencies, ranging from 11 per cent to 16 per cent.

The rating agency has downgraded seven securities in Q1 2009, and since December 2007, Moody’s has reviewed and adjusted the loss expectations in 55 UK sub-prime transactions. Currently it says the reserve funds in 37 of the 89 outstanding securities are below their target level.



News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm