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How Are Irish Households Coping with their Mortgage Repayments? Information from the Survey on Income and Living Conditions

Author

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  • Yvonne McCarthy

    (Central Bank of Ireland)

  • Kieran McQuinn

    (Central Bank of Ireland)

Abstract

This paper uses information contained within the Survey on Income and Living Conditions (SILC) to examine the ability of Irish households to sustain their mortgage repayments. We calculate mortgage repayment to income (MRTI) ratios for a representative sample of Irish households and examine the distribution of this ratio across the sample. In particular, we stratify information on marital, work and educational status along with household composition according to this MRTI. We also examine the distribution of information on household mortgages such as the source, the interest rate paid, the age and tenure, and the monthly repayment of the mortgage according to the same ratio. Finally, the distributional implications for the MRTI of a significant unemployment and interest rate shock are also examined.

Suggested Citation

  • Yvonne McCarthy & Kieran McQuinn, 2011. "How Are Irish Households Coping with their Mortgage Repayments? Information from the Survey on Income and Living Conditions," The Economic and Social Review, Economic and Social Studies, vol. 42(1), pages 71-94.
  • Handle: RePEc:eso:journl:v:42:y:2011:i:1:p:71-94
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    File URL: http://www.esr.ie/vol42_1/04%20McCarthy%20PP%20article.pdf
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    References listed on IDEAS

    as
    1. Addison-Smyth, Diarmaid & McQuinn, Kieran & O'Reilly, Gerard, 2009. "Modelling Credit in the Irish Mortgage Market," The Economic and Social Review, Economic and Social Studies, vol. 40(4), pages 371-392.
    2. Diarmaid Addison-Smyth & Kieran McQuinn & Gerard O'Reilly, 2009. "Supply Response in an Uncertain Market: Assessing Future Implications for Activity Levels in the Irish Housing Sector," International Journal of Housing Policy, Taylor & Francis Journals, vol. 9(3), pages 259-283.
    3. Diarmaid Addison-Smyth & Kieran McQuinn, 2010. "Quantifying Revenue Windfalls from the Irish Housing Market," The Economic and Social Review, Economic and Social Studies, vol. 41(2), pages 201-233.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. McCarthy, Yvonne, 2014. "Dis-entangling the mortgage arrears crisis: The rolw of the labour market, income volatility and housing equity," Research Technical Papers 02/RT/14, Central Bank of Ireland.
    2. Kelly, Robert & O’Malley, Terence, 2016. "The good, the bad and the impaired: A credit risk model of the Irish mortgage market," Journal of Financial Stability, Elsevier, vol. 22(C), pages 1-9.
    3. repec:bla:revinw:v:63:y:2017:i:1:p:95-117 is not listed on IDEAS
    4. Yvonne McCarthy & Kieran McQuinn, 2017. "Deleveraging in a Highly Indebted Property Market: Who does it and are there Implications for Household Consumption?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 95-117, March.
    5. Yvonne McCarthy & Kieran McQuinn, 2017. "Price Expectations, Distressed Mortgage Markets and the Housing Wealth Effect," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 478-513, April.
    6. Kelly, Robert & McCarthy, Yvonne & McQuinn, Kieran, 2012. "Impairment and negative equity in the Irish mortgage market," Journal of Housing Economics, Elsevier, vol. 21(3), pages 256-268.
    7. Gerlach, Petra, 2013. "Younger and Older Households in the Crisis," Research Notes RN2013/1/4, Economic and Social Research Institute (ESRI).
    8. Brown, Martin & Guin, Benjamin, 2015. "The Exposure of Mortgage Borrowers to Interest Rate Risk, Income Risk and House Price Risk – Evidence from Swiss Loan Application Data," Working Papers on Finance 1509, University of St. Gallen, School of Finance.
    9. Martin Brown & Benjamin Suman Guin, 2015. "The Exposure of Mortgage Borrowers to Interest Rate Risk and House Price Risk – Evidence from Swiss Loan Application Data," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 151(II), pages 3-37, June.

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