“…However, the risk exposure of the household sector cannot be accurately assessed by looking at aggregate household balance sheet data alone, which tell us very little about where precisely the vulnerabilities are. For example, loan and borrower characteristics are important determinants of debt sustainability as shown in Lydon and McCarthy (2013). However, the focus of the Lydon and McCarthy study was a rather narrow one, looking solely at the debt sustainability of households with a mortgage only (33 per cent of households).…”