Policymakers have expressed concern that some mortgage holders do not understand or correctly choose their mortgage … products, especially alternative mortgage products (AMPs) with back-loaded payments. Using a specially design question module … standard repayment mortgage. We show poor financial literacy and present bias raise the likelihood of choosing an AMP …

done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on a mortgage and … illustrate that unaffordable loans, defined as those with high mortgage payments relative to income at origination, are unlikely …

Choosing a mortgage is one of the most important financial decisions made by a household. Financial innovation has … given rise to more complex mortgage products with back-loaded payments, known as 'Alternative Mortgage Products' (AMPs), or … 'nterest-Only Mortgages'. Using a specially designed question module in a representative survey of UK mortgage holders, we …

discussions of the mortgage market to see what market participants thought would happen, the authors find that analysts, on the …

towards mortgage indebtedness. We find that a given debt burden creates much higher distress in countries with fewer mortgage … holders relative to countries where a significant part of households uses mortgage debt. This effect is net of ppp …