Regional differences in mortgage demand and mortgage instrument choice in the UK

Alla Koblyakova, Norman Hutchison, Piyush Tiwari

    Research output: Contribution to journalArticlepeer-review

    11 Citations (Scopus)

    Abstract

    This paper presents empirical evidence of regional variations in mortgage choice decisions within the UK’s mortgage sector. Utilising British Household Panel Survey Data for 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.
    Original languageEnglish
    Pages (from-to)1499-1513
    Number of pages15
    JournalRegional Studies
    Volume48
    Issue number9
    Early online date15 Jan 2013
    DOIs
    Publication statusPublished - 2014

    Keywords

    • mortgage choice
    • fixed and variable rate mortgages
    • regional differences

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