...Defaults Reach New High: The pace of new defaults continued its downwards trend, but the stock of loans in default continues to grow, due to the slow pace of enforcement activity. The balance of outstanding net defaulted loans reached 3.9% of the current portfolio in 4Q14. Record Low Early Arrears: Stabilisation of the macroeconomic environment and improving employment prospects are reflected in the one- to two-months arrears levels, which fell to 0.5% of outstanding loans in 2H14, a ten-year low. Home Prices Flat: Quarter-on-quarter (qoq) home prices decreased by a reported 2.3% in 4Q14, but by only 0.9% over the full year. Fitch expects house prices to remain flat in 2015. Property Market More Liquid: Properties sold following enforcement have achieved average prices 30% below original valuations. There are signs that the market has become more liquid. New Lending Subdued: New mortgage lending is down by 90% from pre-crisis levels. Fitch expects lending volumes to remain around these...
