The demand for mortgage finance in the united kingdom

Abstract
This paper examines the rationing behaviour of building societies in the United kingdom. Mortgage rationing is defined as the use of non-interest rate terms to allocate available funds and the empirical results indicate that the adjustment of such terms is significant in determining the demand for mortgage finance. In contrast with previous studies, the demand side of the mortgage market is disaggregated between first-time house buyers and existing owner-occupiers.

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