LLOY, RECI, OSB: Three mortgage stocks to explore mortgage defaults increase - Kalkine Media

May 09, 2023 08:45 AM BST | By Manu Shankar
Follow us on Google News:

Highlights

  • According to a consumer group Which?, approximately 700,000 households across the UK defaulted on their mortgage payments last month.
  • It is revealed that about 2.5% of households defaulted on a housing payment.
  • Meanwhile, approximately 5.2% were found guilty of missing their house rent on time over the past month.

Britain’s housing sector has been turbulent ever since the Bank of England (BoE) started raising interest rates last year in order to deal with rising inflation. This ripple effect even on the mortgages, with several lenders reconsidering the mortgage deals they offered. Many lenders had pulled the deals they offered to post the disastrous mini-budget in September.

However, the UK mortgage rates have dipped since last year. The BoE fixed the average rate on a two-year period to 5.28%, and the average five-year fixed deal was fixed at 5%, relieving many. But with the BoE expected to announce another interest rate hike on 11 May, many foresee that mortgage rates will rise.

However, despite that, many Brits have missed their either paying rent or defaulting on mortgage payments in April. According to a consumer group Which?, approximately 700,000 households across the UK defaulted on their mortgage payments last month.

It is revealed that about 2.5% of households defaulted on a housing payment. Meanwhile, approximately 5.2% were found guilty of missing their house rent on time over the past month.

The survey highlighted that many prioritised their need by saving on essentials such as groceries, medicines, school supplies etc. According to the survey, this portion was among the highest, as 59% accounted for those who saved up instead of spending them.

The borrowers haven’t helped themselves by missing payments as it piles on the debt and affects the credit ratings. Which? Has urged the important sectors to help consumers by offering them good deals on food, energy etc.

Amidst this, let’s explore some mortgage stocks and see how they are faring today.

Real Estate Credit Investments Ltd (LON: RECI)

The Guernsey-based investment company, Real Estate Credit Investments Limited, caters to clients in Western Europe, mainly in the UK, Germany, and France. The Real Estate Credit Investments Limited, on 9 May 2023, was seen trading at GBX 126.50 and was down by -1.17% at the time of writing. With a market cap of £ 293.55 million, the RECI stock has given its shareholders negative returns over the past year and on a YTD basis. Over the year, RECI gave returns of -16.07% and -4.12% on one-year and on a YTD basis.   

Lloyds Banking Group Plc (LON: LLOY)

UK’s one of the leading lenders, Lloyds Banking Group plc, primarily offers retail, corporate and commercial banking, among other services. The FTSE-100 constituent was seeing enjoying a market cap of £30,134.16 million. The LLOY stock on 9 May was witnessing a rise of 0.64% and was trading at GBX 46.11. Lloyds has given its investors positive returns of 5.63% in a 12-year period.

OSB Group Plc (LON: OSB)

The UK-based specialist lending and retail savings company OSB Group Plc is an FTSE-250 constituent. The annual returns offered by OSB Group plc stood at -8.79%, and on a YTD basis, it provided returns of 2.76%. OSB shares on 9 May were witnessing a gain of 1.19% and were trading at GBX 492.40. OSB’s EPS stood at 0.76, boasting a market cap of £ 2,075.17 million.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top LSE Listed Companies