Regional Differences in Mortgage Demand and Mortgage Instrument Choice in the UK

• Published in: Regional studies 2014-09, Vol.48 (9), p.1499-1513
• Main Authors: Koblyakova, Alla, Hutchison, Norman, Tiwari, Piyush
• Format: Article
• Language: English
• Subjects: Auswahl von Hypotheken; Bgi / Prodig; Choix de prêt hypothécaire; Contracts; Credit market; Decision analysis; Decision making; Diferencias regionales; Différences régionales; Elección de hipotecas; England; Europe; Fixed and variable rate mortgages; Hipotecas de interés fijo y variable; Households; Human geography; Hypotheken mit festem und variablem Zinssatz; Income; Monetary policy; Mortgage choice; Mortgages; Regional differences; Regional variation; Regionale Unterschiede; Scotland; Studies; Surveys; Taux fixes et variables; The British Isles; United Kingdom; Wales; 区域差异; 固定利率贷款与浮动利率贷款; 抵押贷款选择
• ISSN: 0034-3404; 1360-0591
• DOI: 10.1080/00343404.2012.750426

Koblyakova A., Hutchison N. and Tiwari P. Regional differences in mortgage demand and mortgage instrument choice in the UK, Regional Studies. This paper presents empirical evidence of regional variations in mortgage choice decisions within the UK's mortgage sector. Utilizing British Household Panel Survey (BHPS) data for the years 2001, 2007 and 2008, the paper suggests that a household's decision to choose a variable rate mortgage is more likely to occur in areas with lower incomes and affordability rates, such as Northern England, Scotland and Wales. Since variable rate mortgages are more sensitive to income and monetary policy shocks, the disproportional distribution of variable contracts within the mortgage sector may have a differential impact on the regions.