Tiongson, ErwinBeck, ThorstenKibuuka, Katie2014-09-022014-09-022010-02https://hdl.handle.net/10986/19925Household credit, especially for mortgages, has doubled over the past years in the new European Union member countries, raising concerns about the economic and social consequences of household indebtedness in the event of a macroeconomic crisis. Using household survey data for 2005, 2006, and 2007 for both old and new European Union members, this paper assesses the determinants of access to mortgage finance. It also examines whether mortgage holders were more likely to suffer financial distress compared with non-mortgage holders in the period before the global financial crisis. The analysis does not find any systematic evidence that mortgage holders are financially more vulnerable than renters or outright owners; in fact, the incidence of financial vulnerability generally fell between 2005 and 2007, possibly reflecting the strong income growth experienced by these countries over this period. In addition, although tenure status is more difficult to explain in the new European Union member countries, the analysis finds that many of the same drivers of tenure status in the older member countries generally drive tenure status in the newer member countries as well. Finally, there is no evidence that access to mortgage credit is based on expected income in the old or in the new European Union member countries.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCIAL SERVICESACCESS TO MORTGAGEADVANCED ECONOMIESAFFORDABILITYARREARSBANK LENDINGBANKING CRISESBANKING INDUSTRIESBANKING SECTORBANKING SECTOR STABILITYBANKRUPTCYBANKRUPTCY LAWBANKSBORROWINGBORROWING CAPACITYBUSINESS CYCLECENTRAL BANKCENTRAL BANKSCOLLATERALCONSUMER CREDITCONSUMER DURABLESCONSUMPTION SMOOTHINGCOOPERATIVESCREDIT BUREAUSCREDIT CONSTRAINTCREDIT CONSTRAINTSCREDIT CRUNCHCREDIT EXPANSIONCREDIT GROWTHCREDIT INFORMATIONCREDIT INFORMATION SYSTEMSCREDIT LEVELSCREDIT MARKETCREDIT OBLIGATIONSDEBT BURDENDEBT BURDENSDEBT HOLDINGDEBT HOLDINGSDEBT LEVELSDEBT PAYMENTDEBT SERVICEDEBT SERVICE OBLIGATIONDEBT SERVICE PAYMENTSDEDUCTIBLEDEFAULTSDEMOGRAPHICDEMOGRAPHIC CHARACTERISTICSDEPENDENTDEPENDENTSDEPOSITDISPOSABLE INCOMEDOMESTIC BANKSDUMMY VARIABLEDUMMY VARIABLESECONOMIC COOPERATIONECONOMIC GROWTHEMPLOYMENT STATUSENTERPRISE CREDITEXCHANGE RATEEXPENDITUREEXPENDITURESEXPOSUREFAMILIESFEDERAL RESERVEFEMALE RESPONDENTSFINANCE ACCESSFINANCIAL ASSETSFINANCIAL BURDENFINANCIAL BURDENSFINANCIAL CONSTRAINTSFINANCIAL CRISISFINANCIAL DEREGULATIONFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL FRAGILITYFINANCIAL POSITIONFINANCIAL RESOURCESFINANCIAL RISKSFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL STUDIESFINANCIAL SUPPORTFINANCIAL SYSTEMSFINANCING CONSTRAINTSFOOD PRICESFOREIGN BANKSFOREIGN CURRENCYFOREIGN EXCHANGEFUNDING SOURCESGENDERGENDER DIFFERENCESGREATER ACCESSHEALTH STATUSHOLDINGSHOME OWNERSHIPHOMEOWNERSHOUSE OWNERSHOUSEHOLD ACCESSHOUSEHOLD ARREARSHOUSEHOLD DEBTHOUSEHOLD INCOMEHOUSEHOLD LENDINGHOUSEHOLD WELFAREHOUSEHOLDSHOUSESHOUSINGHOUSING ECONOMICSHOUSING FINANCEHOUSING FINANCE SYSTEMSHOUSING POLICYINCOME GROUPSINCOME GROWTHINCOME INEQUALITYINCOME SHOCKSINCOME STREAMINCOMESINDEBTEDNESSINEQUALITYINSTALLMENTINSTALLMENTSINTEREST PAYMENTINTEREST PAYMENTSINTEREST RATEINTEREST RATE DATAINTEREST RATE SHOCKSINTEREST RATESINTERNATIONAL BANKINTERNATIONAL SETTLEMENTSJUDICIAL ENFORCEMENTLABOR MARKETLACK OF FINANCELEGAL RIGHTSLENDERSLIABILITYLIBERALIZATIONLIQUIDITYLIQUIDITY CONSTRAINTSLIVING STANDARDSLOANLOAN DELINQUENCYLOAN PAYMENTSLOAN PRODUCTLOCAL CURRENCIESLOCAL CURRENCYMACROECONOMIC CRISISMACROECONOMIC DATAMACROECONOMIC RISKSMACROECONOMIC STABILITYMICRO DATAMICRO-DATAMONETARY FUNDMONETARY POLICYMORTGAGEMORTGAGE CREDITMORTGAGE DEBTMORTGAGE FINANCEMORTGAGE HOLDERMORTGAGE HOLDERSMORTGAGE INSTRUMENTSMORTGAGE INTERESTMORTGAGE LENDINGMORTGAGE LOANMORTGAGE LOANSMORTGAGE MARKETMORTGAGE MARKETSMORTGAGE PAYMENTMORTGAGE PAYMENTSMORTGAGESPRINCIPAL REPAYMENTPRIVATE SECTOR DEVELOPMENTPRIVATIZATIONPROPERTY RIGHTSRENT PAYMENTSRENTSREPAYMENTRISK OF DEFAULTSAVINGSSOCIAL EXCLUSIONTAXTAX RATESTRANSITION ECONOMIESUNDERLYING ASSETUNIONURBAN AREASVARIABLE INTEREST RATEVARIABLE INTEREST RATESVARIABLE RATEVARIABLE RATE MORTGAGESVULNERABLE HOUSEHOLDS10.1596/1813-9450-5202