Reliable UK Mortgage Payers Deliver Juiciest Debt Returns Since 2009
- Mortgage delinquincies seen at less than 1.3% in 2023
- Residential mortgage-backed notes delivered over 6% last year
Residential properties in Guildford, UK.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Juicy yields and British home owners’ reliability when it comes to mortgage repayments have pushed returns for home loan-backed notes to the highest since the financial crisis.
Prime residential mortgage-backed securities in the UK delivered over 6% last year, the most since 2009, according to data compiled by Bloomberg, even as the cost of borrowing rose sharply. Issuers sold notes worth the equivalent of €9 billion ($9.8 billion) in 2023, more than double the previous year and the highest since 2019, according to Barclays Research data.