|Low interest rates and affordability have ensured steady performance of Irish residential mortgage backed securities (RMBS) a report published by Fitch Ratings has revealed. And Ireland’s strong and steady mortgage market is because of good economic growth, net immigration, and preference for home ownership and low interest rate say the credit ratings agency.
In its latest review of all Irish RMBS transactions, Fitch affirmed eight deals and upgraded one. There were no downgrades in the sector. Andy Brewer, associate director responsible for RMBS performance analysis said, ‘competition in the Irish market and low interest rates in the Euro area have kept mortgage debt service very affordable in Ireland despite historically high house prices. This is reflected in the Irish RMBS deals we rate which maintain very low levels of arrears and steady transaction performance’.
According to latest figures released by the Central Bank, as of December 2001, 11.3 per cent of all outstanding Irish residential mortgages were securitised.