We develop a life-cycle optimal investment and consumption model with deferred annuities, housing, mortgages home equity release. The investor can hold cash, bonds, stocks, annuities invest in through renting, purchasing, or mix of both, access to variable-rate mortgages. In retirement, the his housing form release called reversion contract. Transaction costs, taxes management fees are explicit...

Abstract We exploit a U.K. government-sponsored product and provide evidence on shared equity mortgages. The analysis shows how the interaction of house price growth leverage regulation promotes adoption. Following an increase in limit, households use additional financing to buy more expensive properties rather than reduce leverage. Equity used as complement debt is likely less beneficial for f...

This paper presents an ordered logit approach to model the optimal timing of buying a house in the life cycle. The model is applied to three recent Belgian household budget surveys. We find that households postpone homeownership or choose to be lifelong tenant due to an increase of the transaction tax rate, the real interest rate on mortgages and an indicator for the evolution of real house pri...

We use wavelet multiresolution decomposition and cross-wavelet analysis to reveal certain properties in financial data related to mortgages to households and gross domestic product data in Spain. Wavelet techniques possess many desirable properties, some of which are useful as a vehicle for analysing economic and financial data. In our case, wavelets are useful for drawing conclusions both in t...

One form of prudence from financial institutions is to ask for a fiduciary assurance debtors guarantee debt repayment or fulfillment the contract in accordance with agreement. In assurance, goods that become object cannot be transferred third party either by being sold, pawned, and so on without written permission debtor. Debtors who transfer security pledges defaults, then there are efforts ma...

A model is constructed in which consumers and banks have incentives to fake the quality of collateral. Conventional monetary easing can exacerbate these problems, in that the mispresentation of collateral becomes more profitable, thus increasing haircuts and interest rate differentials. Central bank purchases of private mortgages may not be feasible, due to misrepresentation of asset quality. I...