Limiting Possessions? Managing Mortgage Arrears in a New Era
Over the last 30 years the UK has seen a structural increase in mortgage default, interacting with cyclical economic trends to provide peaks and troughs of default. The latest upturn in mortgage arrears, from 2004, has been exacerbated by recessionary pressures since 2006. Despite significant exposure to risk and a distinct configuration to the current recession, lenders initial responses in 2006 and 2007 to managing arrears were limited and unchanged from the 1990s. This paper explores the extent to which such practices then changed, why and with what consequences. The paper identifies a shift in lenders' responses to mortgage arrears and possessions from 'pay or possess' to more 'managed forbearance'. It explores the ways in which commercial considerations, housing market drivers, a more stringent regulatory environment and government intervention have influenced this change resulting in a slower than expected growth in possessions. The paper considers the contingent nature of these changes and the implication for the longer-term sustainability of homeownership. The paper is based upon a qualitative study of lenders' and government agencies' responses to the current market downturn. The paper has a UK focus, but, in the context of global recession and significant homeownership markets in many developed countries, the issue of mortgage default and its management may resonate beyond the UK.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 10 (2010)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REUJ20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REUJ20|
When requesting a correction, please mention this item's handle: RePEc:taf:intjhp:v:10:y:2010:i:2:p:133-154. 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: (Michael McNulty)
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.