Income Multiples and Mortgage Repossession in the UK

Research output: Working Paper


This paper presents the findings of the study that examines how income multiples for mortgage loan associates with home repossession using the data of the Council of Mortgage Lenders (CML). It employs a statistical measure for improving regression efficiency with conditioning information in the form of lagged instrument to unravel the pattern of association evident from the data. Based on the data, the study investigates what level of income multiples is optimum - that is the income multiple that minimises home repossession. A sensitivity analysis was undertaken to show how home repossession responds to changes in income multiples. For each of the analytical tasks, the study compares the aggregate market, first-time-buyers, and home movers.
Original languageEnglish
PublisherSchool of Real Estate and Planning, Henley Business School, University of Reading
Number of pages21
Publication statusPublished - 29 Apr 2010


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