UK mortgage moratoriums clash with Libor deadline

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By Tom Brown
01 Jun 2020

The Financial Conduct Authority (FCA) has ruled out granting a reprieve to the Libor benchmark, leaving the UK RMBS market to face transitioning legacy deals before the end of the year. That means that lenders will be grappling with the shift at the same time as borrowers will come to the end of Covid-19 payment moratoriums.

Under the moratorium scheme, borrowers who requested a payment holiday in March would have payments due in July. Those borrowers who require continued support can now ask for a further extension until October.

November, when arrears are reported in transaction documents, will show the full extent to ...

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