The valuation of no-negative equity guarantees and equity release mortgages
(2019)
Journal Article
Dowd, K., Blake, D., Buckner, D., & Fry, J. (2019). The valuation of no-negative equity guarantees and equity release mortgages. Economics letters, 184, Article 108669. https://doi.org/10.1016/j.econlet.2019.108669
We outline the valuation process for a No-Negative Equity Guarantee in an Equity Release Mortgage loan and for an Equity Release Mortgage that has such a guarantee. Illustrative valuations are provided based on the Black ’76 put pricing formula and m... Read More about The valuation of no-negative equity guarantees and equity release mortgages.