... Over the past few months there has been an increased expectation of a slowdown in the UK housing market which may in turn feed through into a wider economic slowdown. Following several years of largely uninterrupted house price growth, most market data released in #H#### indicate that the long awaited cooling of the UK housing market is finally materialising. The majority of market commentators predict a flat to ##% decline in house prices during ####. In Fitch Ratings view, the recent trend of moderate negative monthly declines to house prices is likely to continue given ongoing funding difficulties for lenders and a slump in prospective buyers confidence. Challenging conditions in the mortgage market are expected to result in stretched affordability and payment shocks for many borrowers during ####, potentially pushing some borrowers into defaults or delinquencies the extent of which is difficult toforecast. To assess what kind of impact such a deterioration in asset performance could have on RMBS ratings, Fitch has stress tested the ratings under varying scenarios of declining house prices and increasing defaults on all outstanding Fitch rated UK non conforming RMBS transactions as on ## Dec ####. The study includes ### collateralised tranches in ### UK non conforming transactions,rated from #### #### vintages. The key findings oftheagency s stress tests show that:...

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 Fitch Research
Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings has grown rapidly during the past decade gaining market presence throughout the world and across all fixed income markets.