Something will turn up? Financial over-optimism and mortgage arrears

Dawson, Chris; Henley, Andrew

Abstract

This paper investigates the association between unrealised financial expectations (over-optimism) and subsequent mortgage repayment difficulties, using British longitudinal data. Evidence is provided that an increased probability of mortgage payment difficulties post committal is associated with over-optimism prior to new mortgage advances. © 2012 Elsevier B.V.

• Journal Article Type: Article
• Publication Date: Oct 1, 2012
• Deposit Date: Oct 22, 2012
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 117
• Issue: 1
• Pages: 49-52
• DOI: https://doi.org/10.1016/j.econlet.2012.04.063
• Keywords: financial optimism, expectations, mortgage arrears
• Public URL: https://uwe-repository.worktribe.com/output/943222
• Publisher URL: http://dx.doi.org/10.1016/j.econlet.2012.04.063
• Contract Date: Dec 2, 2016