Surrey research on innovative mortgage design published in leading finance journal
A research paper co-authored by the University of Surrey’s Dr Rafal Wojakowski and leading international collaborators has been accepted for publication in the International Review of Finance.
The paper, 'Automatic Workout Mortgage and Housing Consumption Choice', is co-authored with Nobel Laureate Professor Robert Shiller of Yale University, alongside Professor Shahid Ebrahim (Durham University) and Professor Mark Shackleton (Lancaster University). It represents the third output of an ongoing trans-Atlantic research collaboration examining innovative financial solutions for housing markets.
The research introduces the Automatic Workout Mortgage, a novel mortgage design that incorporates an insurance-style mechanism to protect borrowers against negative equity while reducing systemic risk in housing markets. The work also explores the potential of enhanced reverse mortgage products that help risk-averse homeowners protect their accumulated housing wealth and strengthen financial resilience in retirement.
During the development of the project, the research was presented at several leading international conferences, including the American Real Estate and Urban Economics Association Annual Meeting in Chicago and the Yokohama Conference on Real Estate, Household, and ESG Finance in Japan. The paper also received the Best Paper Award at the 4th Contemporary Issues in Financial Markets and Banking Conference.
The collaboration also included a visit to Surrey by Professor Robert Shiller, who took part in a discussion at the World Summit organised by students of the Surrey Economics and Finance Society.
Related sustainable development goals
