How are Irish Households Coping with Their Mortgage Repayments? Information from The Survey on Income and Living Conditions

The Economic and Social Review, Vol. 42, No. 1, Spring, 2011, pp. 71–94

24 Pages Posted: 12 Dec 2014

See all articles by Yvonne McCarthy

Yvonne McCarthy

Central Bank of Ireland

Kieran McQuinn

Central Bank and Financial Services Authority of Ireland

Date Written: 2011

Abstract

This paper uses information contained within the Survey on Income and Living Conditions (SILC) to examine the ability of Irish households to sustain their mortgage repayments. We calculate mortgage repayment to income (MRTI) ratios for a representative sample of Irish households and examine the distribution of this ratio across the sample. In particular, we stratify information on marital, work and educational status along with household composition according to this MRTI. We also examine the distribution of information on household mortgages such as the source, the interest rate paid, the age and tenure, and the monthly repayment of the mortgage according to the same ratio. Finally, the distributional implications for the MRTI of a significant unemployment and interest rate shock are also examined.

Keywords: Mortgage Distress, Debt, Household Finances

JEL Classification: d14, g21

Suggested Citation

McCarthy, Yvonne and McQuinn, Kieran, How are Irish Households Coping with Their Mortgage Repayments? Information from The Survey on Income and Living Conditions (2011). The Economic and Social Review, Vol. 42, No. 1, Spring, 2011, pp. 71–94, Available at SSRN: https://ssrn.com/abstract=2536939

Yvonne McCarthy (Contact Author)

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

Kieran McQuinn

Central Bank and Financial Services Authority of Ireland ( email )

P.O. 559 Dame Street
Dublin 2, D2
Ireland

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