UK has highest rate of Covid mortgage holidays but credit effect uncertain

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By Bill Thornhill
27 Jul 2020

Mortgage payment holidays across Europe, offered to help borrowers cope with the economic effects of lockdown, were highest in UK covered bond pools, according to the European Covered Bond Council’s newly updated harmonised transparency template (HTT). But that reflects the ease with which homeowners could apply for the breaks rather than the likelihood of those loans turning into bad ones.

Payment holidays accounted for about 20% of nominal value of the cover pools of Nationwide Building Society, Santander UK and Clydesdale Bank at the end of May. 

The lowest rate of payment holidays for a UK lender was seen in the cover pool of the Yorkshire Building Society ...

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