Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/129828 
Erscheinungsjahr: 
2015
Schriftenreihe/Nr.: 
CeDEx Discussion Paper Series No. 2015-15
Verlag: 
The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx), Nottingham
Zusammenfassung: 
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 investigate the effect of consumer financial sophistication on the decision to choose an AMP instead of 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.
Schlagwörter: 
mortgages
financial literacy
present bias
alternative mortgage products
JEL: 
D10
D12
G21
Dokumentart: 
Working Paper

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