U.K. prime RMBS investors may see loss severities decrease in U.K. RMBS deals as house prices stabilize on the back of a new housing initiative announced yesterday, according to a Barclays report.

The U.K. government’s new initiative is also likely to improve the refinancing options for U.K. borrowers. This, said analysts in the Barclays report, should boost prepayment rates “due to a material increase in remortgage options (particularly at the high LTV levels) and the lower rates that should be on offer.”

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.