The Problem of Front-end Loading and Disorder in the Housing Market

D Leslie

Economic Issues Journal Articles, 2001, vol. 6, issue 1, 67-81

Abstract: The paper asks why indexation of debits is not typically observed in the UK housing market. Indexation ensures that real debits change only if the real rate of interest alters and eliminates the problem of front end loading or the tilt. The typical British repayment mortgage and the index linked alternative are just two special cases of a more general repayment schedule. A measure of front end loading, which compares the real value of debt with the index linked alternative over the term of the loan, is described. Neither of the two special cases need correspond to the ideal degree of front end loading.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.economicissues.org.uk/Files/2001/101fLeslie.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eis:articl:101leslie

Access Statistics for this article

More articles in Economic Issues Journal Articles from Economic Issues Contact information at EDIRC.
Bibliographic data for series maintained by Dan Wheatley ().