Modelling and forecasting mortgage delinquency and foreclosure in the UK
02 Sep 2016
INET Oxford's John Muellbauer & Janine Aaron look at three key drivers of delinquency and foreclosure rates in the UK in a new Vox column.
Mortgage delinquencies and foreclosures have serious implications, not just for the households affected, but for the financial stability of the economy. The solvency of the mortgage lenders is affected, and their ability to extend credit. This column identifies three key drivers of delinquency and foreclosure rates in the UK – the debt service ratio, the proportion of homes in negative equity, and the unemployment rate – and compares the rates with those in the US. It also discusses the data constraints that have hindered previous analyses.
For the full article please click here.