...Steady Performance: The main performance indicators show improvement over 1H15. Late- stage arrears remain broadly stable, below 1.6%. At the same time, the constant default rate (CDR) contracted to around 1.2% p.a. Fewer Payment Holidays: Loans in payment holiday declined to 1.9% in June, compared to 2.1% reported in 1Q15. The combination of decreasing payment holidays and stable late- stage arrears indicates an improvement in borrower affordability. Borrowers Continue Refinancing: In 2Q15 the average prepayment rate was 3.9%, as subrogations made-up roughly 60% of new loans. The low interest rate environment remains favourable, especially for borrowers refinancing to fixed rate loans. ...
