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Mortgage Market Review: “Hard-Wired Common Sense?”

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  • Sarah Nield

Abstract

The financial crisis triggered a major rethink of neo-liberal notions of rational decision-making within mortgage markets. In the UK, the Mortgage Market Review conducted by the Financial Services Authority provided this rethink and has resulted in a shift in responsibility in mortgage sales onto mortgage providers which has been hailed as “hard-wired common sense.” This article argues that the common sense within the sales process is of limited utility unless matched by a coherent fit with responses to the consequence of mortgage default and overall housing policy. Common sense will only be achieved by formulating effective safety nets and housing alternatives which reflect an appropriate balance of responsibility between all stakeholders. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Sarah Nield, 2015. "Mortgage Market Review: “Hard-Wired Common Sense?”," Journal of Consumer Policy, Springer, vol. 38(2), pages 139-159, June.
    • Handle: RePEc:kap:jcopol:v:38:y:2015:i:2:p:139-159
    DOI: 10.1007/s10603-014-9280-2
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    References listed on IDEAS

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    1. Mark Stephens, 2012. "Tackling Housing Market Volatility in the UK. Part I: Long- and Short-term Volatility," International Journal of Housing Policy, Taylor & Francis Journals, vol. 12(3), pages 367-380.
    2. Alison Wallace & Janet Ford, 2010. "Limiting Possessions? Managing Mortgage Arrears in a New Era," International Journal of Housing Policy, Taylor & Francis Journals, vol. 10(2), pages 133-154.
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    Cited by:

    1. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    2. Vanessa Mak, 2015. "What is Responsible Lending? The EU Consumer Mortgage Credit Directive in the UK and the Netherlands," Journal of Consumer Policy, Springer, vol. 38(4), pages 411-430, December.

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