IDEAS home Printed from https://ideas.repec.org/p/cbi/ecolet/06-el-12.html
   My bibliography  Save this paper

Housing equity withdrawal in Ireland: 2000 - 2011

Author

Listed:
  • Lydon, Reamonn

    (Central Bank of Ireland)

  • O'Hanlon, Niall

    (Central Statistics Office)

Abstract

At the peak of the Irish property boom in the mid-2000s, housing equity withdrawal by existing homeowners accounted for around one-third of residential mortgage loans issued. This collateral-based lending was typically issued at a signi cant discount to other forms of personal lending, often at tracker rates. By the end of 2011 the value of equity release borrowing was down 97 percent from the peak (2006). This Economic Letter summarises the trends in housing equity withdrawal over the last decade, both in terms of the extent of lending that occurred and the reasons for borrowers taking out such loans. We nd that whilst the majority of housing equity withdrawal was used for housing investment, there is a also a strong correlation between equity release patterns and spending on certain large-scale consumer durables such as motors and furniture.

Suggested Citation

  • Lydon, Reamonn & O'Hanlon, Niall, 2012. "Housing equity withdrawal in Ireland: 2000 - 2011," Economic Letters 06/EL/12, Central Bank of Ireland.
  • Handle: RePEc:cbi:ecolet:06/el/12
    as

    Download full text from publisher

    File URL: https://centralbank.ie/docs/default-source/publications/economic-letters/economic-letter---vol-2012-no-6.pdf?sfvrsn=10
    Download Restriction: no

    References listed on IDEAS

    as
    1. Nathalie Girouard & Christophe André, 2005. "Measuring Cyclically-adjusted Budget Balances for OECD Countries," OECD Economics Department Working Papers 434, OECD Publishing.
    2. Alberto Alesina & Silvia Ardagna, 2010. "Large Changes in Fiscal Policy: Taxes versus Spending," NBER Chapters,in: Tax Policy and the Economy, Volume 24, pages 35-68 National Bureau of Economic Research, Inc.
    3. Hansjörg Blöchliger & Dae-Ho Song & Douglas Sutherland, 2012. "Fiscal Consolidation: Part 4. Case Studies of Large Fiscal Consolidation Episodes," OECD Economics Department Working Papers 935, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ebner, André, 2013. "A micro view on home equity withdrawal and its determinants: Evidence from Dutch households," Journal of Housing Economics, Elsevier, vol. 22(4), pages 321-337.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbi:ecolet:06/el/12. 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: (Fiona Farrelly). General contact details of provider: http://edirc.repec.org/data/cbigvie.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.