Lee, D. , Orr, A. and Pryce, G. (2010) Risk pricing on residential mortgages in the UK. In: CCHPR 20th Anniversary Conference: Housing – the next 20 years, Cambridge, 15-16 September 2010, (Unpublished)
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Publisher's URL: http://www.cchpr.landecon.cam.ac.uk/
Abstract
This paper investigates three questions. First, what does economic theory tell us about the likely approach of mortgage lenders to risk pricing - how should we expect the interest rate charged to different mortgage borrowers vary with the risk of default? Second, is risk pricing desirable – should governments intervene to promote or discourage it? Third, is the anticipated behaviour borne out by the evidence on new residential mortgages in the UK? We explore the third question using a large datasets of UK mortgage originations, and control for spatial effects, choice of mortgage product and variation in behaviour across lenders.
Item Type: | Conference Proceedings |
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Status: | Unpublished |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Pryce, Professor Gwilym and Orr, Dr Allison and Lee, Professor Duncan |
Authors: | Lee, D., Orr, A., and Pryce, G. |
College/School: | College of Social Sciences > School of Social and Political Sciences > Urban Studies |
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