The asset quality of residential mortgage-backed securities in Ireland is set to weaken in 2020, credit reference agency Moody’s has predicted.
This is due to the inclusion of buy-to-let loans, higher loan-to-value reperforming loans and fixed-rate mortgages, though underwriting standards and transaction structures will remain strong.
Irish GDP growth is expected to fall from 5.2% in 2019 to 3.2% in 2020.
Brexit is said to be the largest single risk to Ireland’s economic outlook, seeing as the UK is its main recipient of exports, while supply chains are deeply integrated.
