John Gathergood|Joerg Weber
Financial literacy: A barrier to home ownership for the young?
University of Nottingham|Decision Research|University of Nottingham
decision buy home one important choices faced household young households purchase home using mortgage mortgages complex financial instruments complexity may barrier less sophisticated households becoming homeowners using survey data sample english welsh households measure household financial literacy related mortgages including concepts loan duration interest compounding amortization find population mortgage financial literacy generally low among renters mortgage financial literacy substantially worse among homeowners econometric estimates show mortgage financial literacy predicts home ownership younger older households financial literacy also affects type mortgage leverage position younger households young homeowners poorer financial literacy take larger mortgage debts likely use alternative mortgage products