Housing Consumption and Investment: Evidence from Shared Equity Mortgages

• 成果类型: Article
• 署名作者: Benetton, Matteo; Bracke, Philippe; Cocco, Joao F.; Garbarino, Nicola
• 署名单位: University of California System; University of California Berkeley; Bank of England; University of London; London Business School; Center for Economic & Policy Research (CEPR); Leibniz Association; Ifo Institut; University of Munich
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab119
• 发表日期: 2022
• 页码: 3525
• 关键词: finance; debt

摘要

We exploit a U.K. government-sponsored product and provide evidence on shared equity mortgages. The analysis shows how the interaction of house price growth and leverage regulation promotes product adoption. Following an increase in the equity limit, households use the additional financing to buy more expensive properties rather than reduce leverage. Equity used as a complement to debt is likely less beneficial for financial stability than when used as a substitute. Equity borrowers are less likely to change lenders when refinancing their senior debt. Finally, we measure the equity provider returns, which are affected by selection and undervaluation at repayment.