Following the global financial crisis, macroprudential regulators in a number of countries took actions to mitigate risks arising from stressed mortgage markets to financial and economic stability. Having disaggregated information on the stock of mortgages allows policymakers to analyse particular cohorts of the market that may be more vulnerable to stress, and model how these cohorts may evolve in the future and might affect the outlook for financial and economic stability. Mariana Gimpelewicz describes the first ever estimate of the current stock of all regulated UK mortgages at the level of individual loans using data from the flow of new mortgages.
Image courtesy of interviewee. April 24, 2019