Securitisation and Rate Setting in the UK Mortgage Market
City University Business School Finance Working Paper No. 2
36 Pages Posted: 9 Mar 2002
Date Written: December 2001
The objective of this paper is to investigate the way mortgage rates are set by lenders funded by deposits and lenders funded by securitisation. The paper tests the response of both types of lenders to changes in market rates using an Error Correction Model.
Keywords: Securitisation, centralised lenders, rate setting
JEL Classification: G21, G31, G32
Suggested Citation: Suggested Citation