Diaz-Serrano, Luis (2005) Income Volatility and Residential Mortgage Delinquency: Evidence from 12EU Countries. UNSPECIFIED. (Unpublished)

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Abstract

We Investigate the socio-economic determinants of mortgage delinquency in 12EU countries and observe that income volatility in income is high enough. From this result we can draw the following conclusions:i) mortgage protection insurance policies might be failing to cover those borrowers most in need; ii) the existence of credit market imperfection, and;iii) the inability for a number of borrowers most at income risk to accumulate precautionary savings in order to meet morgage payments when stocks in imcome rise.

Item Type:	Other
Additional Information:	Department of Economic Working Paper Series N153/02/05
Keywords:	Income volatility, mortgage delinquency, mortgage insurance, homeownership, payment-to-income ratio, credit market imperfections, precautionary savings.
Academic Unit:	Faculty of Social Sciences > Economics, Finance and Accounting
Item ID:	210
Depositing User:	Ms Sandra Doherty
Date Deposited:	15 Mar 2005
Refereed:	No
URI:
Use Licence:	This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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