Print Email Facebook Twitter Dutch mortgage arrears and the role of the global financial crisis Title Dutch mortgage arrears and the role of the global financial crisis Author Teye, A.L. De Haan, J. Elsinga, M. Faculty Architecture and The Built Environment Department OTB Date 2015-06-29 Abstract As in many countries, the Dutch housing market was severely hit by the recent financial crisis. Following the recession, the average house price in the Netherlands fell by almost 25% and the proportion of homeowners with mortgage payment arrears nearly doubled. In this paper, we study mortgage payment arrears in the Netherlands and investigate the contribution of the credit crisis to the development of the current phenomenon of mortgage default. An aggregate distributed-lag model is employed for the period between 2004 and 2013 to assess the influence of various socio-economic factors. The variables considered include: aggregate mortgage debt, mortgage interest rate, unemployment rate and the dissolution of families. The paper concludes that family break-down remains the most important risk factor associated with mortgage default in the Netherlands. The effect of unemployment is generally minor while mortgage interest rates have no statistically significant impact except that they implicitly contribute to the level of mortgage debt. The impact of mortgage debt on payment arrears is limited because of the unique characteristics of the housing market. Subject distributed-lag modelDutch housing marketfinancial crisishome ownershipmortgage arrears To reference this document use: http://resolver.tudelft.nl/uuid:391d3c72-edf2-49f2-bc07-ed6506d0348c Publisher ENHR Source ENHR 2015 Conference ‘Housing and Cities in a time of change: are we focusing on People?’ Lisbon, Portugal, 29 June-1 July 2015 Part of collection Institutional Repository Document type conference paper Rights (c) 2015 The Author(s) Files PDF 326769.pdf 613.54 KB Close viewer /islandora/object/uuid:391d3c72-edf2-49f2-bc07-ed6506d0348c/datastream/OBJ/view