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Journal Article

Who withdraws housing equity and why?

Authors

Publication date

2009

Abstract

The decision to extract home equity is examined using household-level data for the UK over 1993-2003. At its peak during the period, around 1-in-10 homeowners withdraw equity per year. Little is known about this financial decision. I find that the equity withdrawal decision conforms to predictions from the standard life-cycle framework and models that predict its use as a financial buffer. The paper also estimates responses to the large house price appreciation and significant reductions in mortgage rates seen during the period.

Published in

Economica

Volume

76 (301):51-70

DOI

http://dx.doi.org/10.1111/j.1468-0335.2008.00693.x

Subjects

Finance and Housing Market

Links

http://serlib0.essex.ac.uk/record=b1597373~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#513254


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