The theory of intertemporal consumption provides a framework for understanding how we make decisions relating to mortgage affordability.
Relaxing Mortgage Rules
While the goal of boosting home ownership and economic growth is commendable, the key question remains: is loosening restrictions on high loan-to-income mortgages truly the right solution?
Chart of the Week
Summary When faced with the prospect of rising interest rates, some have dismissed the potential pain it will cause by arguing that rates were much higher in the 80s and 90s. This week’s chart compares the impact on living standards that high mortgage rates had on homeowners in the late 80s to the present day, […]
Chart of the Week: Week 30, 2014: UK Housing Affordability
This year, our annual chart on housing affordability shows quite a dramatic increase in the house price to earnings ratio, and unlike last year, mortgage affordability has also declined.