Pockets of Risk in European Housing Markets: Then and Now

Indebtedness and Spending: What Happens When the Music Stops?

“…At the peak of the boom, more than half of new mortgages were high-or very-high LTV loans (i.e. greater than 90% LTV, seeKelly et al (2019)). The shift from downward to upward sloping LTVs within buyer group in 2010 (high-leverage buyers only) and 2013 (all buyers) is driven by the house price collapse.…”

“… See Jappelli et al (1998) for an early paper using self-reported credit constraints Kelly et al (2019). also examine the link betweeen indebtedness and the incidence of credit contraints in a cross-country setting.14 This is the same data used for Figure9.…”