May 9, 2011 – Arrears among U.K. buy-to-let mortgage borrowers rose sharply in the 2008 downturn, but since late 2009 the trend has reversed almost as quickly. We believe credit performance in this sector has been more volatile than for equivalent owner-occupier loans due to a greater contraction in mortgage availability and a greater sensitivity to interest rates. In this CreditMatters TV segment, Standard & Poor’s Mark Boyce, associate in European Structured Finance Research, discusses the characteristics of the asset class, and considers the outlook given likely rate rises ahead.
Duration : 0:7:51