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S&P Credit Research2350 word report
published Sep 11, 2008
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$500.00 available for immediate download
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S&P Credit Research
| Abstract: | The downward trend in U.K. house prices is now well established, and Standard&Poor's Ratings Services' expects prices to continue falling in the near term. Our economists forecast that the overall peak-to-trough decline will be around 25% before prices flatten off in 2009 (see "Related Articles"). This represents a further decline of around 14% from the end of August. In this scenario, a significant number of U.K. mortgage borrowers would fall into negative equity. We have researched the risk of negative equity using loan-by-loan data for a sample of over two million outstanding U.K. mortgages, and estimate that: The average U.K. mortgage has a loan-to-value (LTV) ratio of only about 54%. Nevertheless, around 200,000 (1.7%) of U.K. borrowers were
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| Brief Excerpt: | RESEARCH Ratings Definitions Risk Of Negative Equity For U.K. Mortgage Borrowers Returns-Update Publication date: 11-Sep-2008 Surveillance Credit Analysts: Andrew South, London (44) 20-7176-3712; andrew_south@standardandpoors.com...
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| Report Type: | Commentary
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| Sector: | Asset-Backed Commercial Paper, Asset-Backed Securities, Collateralized Debt Obligations, Commercial MBS, Real Estate Companies, Residential MBS, Servicer Evaluations, Structured Finance
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S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.
