John Gathergood|Joerg Weber
Financial literacy, present bias and alternative mortgage products
University of Nottingham|University of Nottingham
choosing mortgage one important financial decisions made household financial innovation given rise complex mortgage products backloaded payments known alternative mortgage products amps interestonly mortgages using specially designed question module representative survey uk mortgage holders investigate effect consumer financial sophistication decision choose amp instead standard repayment mortgage show poor financial literacy present bias raise likelihood choosing amp financially literate individuals also likely choose adjustable rate mortgage arm suggesting avoid paying term premium fixed rate mortgage