The Problem of Front-end Loading and Disorder in the Housing Market
The paper asks why indexation of debits is not typically observed in the UK housing market. Indexation ensures that real debits change only if the real rate of interest alters and eliminates the problem of front end loading or the tilt. The typical British repayment mortgage and the index linked alternative are just two special cases of a more general repayment schedule. A measure of front end loading, which compares the real value of debt with the index linked alternative over the term of the loan, is described. Neither of the two special cases need correspond to the ideal degree of front end loading.
Volume (Year): 6 (2001)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
Web page: http://www.economicissues.org.uk
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Goodman, Allen C. & Wassmer, Robert W., 1992. "Optimal mortgage design when transaction costs constrain mobility," Journal of Housing Economics, Elsevier, vol. 2(1), pages 17-36, March.
When requesting a correction, please mention this item's handle: RePEc:eis:articl:101leslie. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan Wheatley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.