Should U.K. home prices head south, U.K. non-conforming securitization structures could theoretically weather the storm, given the credit enhancement and structural mitigants of these deals. But at the moment, it's a notion not likely to play out, say lenders who see housing fundamentals stabilizing and more good times ahead for this sector.

Home prices have slowed, but most lenders in the market remain positive that an all-out collapse is not in the cards. "Our view is that house prices will continue to slow but the press headlines that we see at the moment are misleading," said one market source. "What we are seeing is not a general slowdown but a slowdown, or a reduction in the increase of house prices."

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