Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193949 
Year of Publication: 
2019
Series/Report no.: 
ESRI Working Paper No. 612
Publisher: 
The Economic and Social Research Institute (ESRI), Dublin
Abstract: 
Encouraging consumers to seek out and switch to lower-rate mortgages is important both for the individual consumer's finances and for functioning competitive markets, but switching rates are low. We conducted an experiment with mortgage-holders to test whether official advice on how to select good mortgage products and how to navigate the switching process alters perceptions of switching. The experiment shows that the advice made consumers more sensitive to interest rate decreases and more favourable towards switching at longer terms. It also increased consumers' confidence in their ability to select good offers. The findings imply that advice from policymakers can change perceptions and increase switching rates.
Subjects: 
financial decision-making
consumer advice
mortgages
switching
behavioural economics
JEL: 
C91
D14
D91
G21
G28
G41
Document Type: 
Working Paper

Files in This Item:
File
Size
712.76 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.