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Household Access to Mortgages in the UK

Author

Listed:
  • Alper Kara

    (Loughborough University)

  • Philip Molyneux

    (Bangor University)

Abstract

We employ the propensity score matching approach to investigate household access to mortgages in the UK using information on 29,732 households between 2003 and 2010. We find that, on average, the probability of obtaining a mortgage is similar for White and Non-White households. However, we find that Black households with low incomes are less likely to have mortgages compared to White households with similar characteristics. Asian households, in contrast, do not seem to have a lower probability of having a mortgage.

Suggested Citation

  • Alper Kara & Philip Molyneux, 2017. "Household Access to Mortgages in the UK," Journal of Financial Services Research, Springer;Western Finance Association, vol. 52(3), pages 253-275, December.
    • Handle: RePEc:kap:jfsres:v:52:y:2017:i:3:d:10.1007_s10693-016-0246-1
    DOI: 10.1007/s10693-016-0246-1
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    2. Y Deku, Solomon & Kara, Alper & Smith, Kay & Xia, Mengxue, 2022. "Ethnic minorities’ access to mortgages in the UK: The undesirable impact of the Great Financial Crisis," Finance Research Letters, Elsevier, vol. 45(C).
    3. Paolo Emilio Mistrulli & Md Taslim Uddin & Alberto Zazzaro, 2023. "Discrimination of Immigrants in Mortgage Pricing and Approval: Evidence from Italy," CSEF Working Papers 675, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. Kara, Alper & Zhou, Haoyong & Zhou, Yifan, 2021. "Achieving the United Nations' sustainable development goals through financial inclusion: A systematic literature review of access to finance across the globe," International Review of Financial Analysis, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Mortgage; Racial origin; Propensity score matching;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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