lower labour income and more widespread homeownership. An expansionary monetary policy can thus be effective in mitigating …

This paper studies how mortgage borrowers and house prices react to a tightening of mortgage limits following a policy … leverage (LTV) of the mortgage. Using a difference-in-difference methodology, I find that groups of (poorer) borrowers, who …-to-value threshold, responded primarily by reducing the LTV of the mortgage. Borrowers who purchase cheaper houses could be buying …

real house price, residential investment and mortgage debt on the two sides of the Atlantic. Then, it presents evidence …