Interest rate increases have reduced mortgage affordability and will eventually increase arrears and defaults in securitised pools where borrowers pay floating interest rates or have to refinance at higher fixed rates. Fitch revised the UK residential mortgage backed securities (RMBS) prime and buy-to-let (BTL) asset performance outlooks to deteriorating from stable on 29th September.
Shawbrook completes securitisation of TML buy- to-let portfolio The Lanebrook Mortgage Transaction 2022-1 comprised of 2,452 loans against properties in England, Wales and Scotland. The transaction raised £346m and will provide additional funding to support its growth and further diversify its funding base. It is the fifth securitisation Shawbrook has completed since 2019.
