Arbeitspapier
Financial literacy, present bias and alternative mortgage products
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 in a UK survey, we investigate the impact of consumer financial sophistication on the decision to choose an AMP over a standard repayment mortgage. We show poor financial literacy and present bias raise the likelihood of choosing an AMP. Financially literate individuals are also more likely to choose an adjustable rate mortgage, suggesting they avoid paying the term premium of a fixed rate mortgage.
- Sprache
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Englisch
- Erschienen in
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Series: CeDEx Discussion Paper Series ; No. 2015-13
- Klassifikation
-
Wirtschaft
Household Behavior: General
Consumer Economics: Empirical Analysis
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Thema
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mortgage
financial literacy
present bias
alternative mortgage products
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gathergood, John
Weber, Jörg
- Ereignis
-
Veröffentlichung
- (wer)
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The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
- (wo)
-
Nottingham
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gathergood, John
- Weber, Jörg
- The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
Entstanden
- 2015
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