Important Factors That Influence Mortgage Lending, And the Level
Of Significance Each One Has (2008)  

Over the past 10 years; the USA, Spain, Russia, India and China to name a few, have been experiencing what is known as ‘property bubble’ behaviour within their respective housing markets.  Shanghai in China, more specifically suffered from a crash and Japan were able to recover sufficiently from their asset market crash in the early 1990’s.   The UK housing market has been subject to continuous ‘bubble’ speculation over recent years, and this has been fuelled by fairly been vigorous movements of all the contributing factors.  In today’s economy, a housing crash would be almost catastrophic for the British public as the impact will not be easily repairable.   Yet at the opposite end of the spectrum, a booming housing market is a valuable asset in determining economic growth, as has been the case for many economies including the UK. One of my key motivations to look into the market was that, to my recollection there have been not studies looking into the determinants of mortgage lending.  Much of the research has been focusing on house price movements, cyclical movements and potential gains on property investment.  I will also look into house price determination myself and see whether or not findings relate to previous studies.  I hope to find that the empirical and econometric analysis will produce results which truly reflect current market conditions.