Individual Landlords in the Mortgage Market New!

We use administrative data on the universe of mortgage originations to individual landlords in the United Kingdom to study their asset and financing choices around a large unexpected credit tightening event. This event led to an increase in rental yields driven by a decline in property values, despite rents continuing to increase. Loan originations become more concentrated among specialist lenders, who facilitate credit access through contracts with less-stringent stress testing requirements, increasing mortgage rates less for larger landlords, and substituting for these changes with higher upfront fees.