New figures from the Bank of England suggest that mortgages against energy-efficient properties, with an EPC rating of A, B or C, are less frequently in arrears.
BoE examined 1.8 million outstanding mortgages and found that around 0.93% of residential mortgages against energy-efficient properties are in payment arrears, compared to 1.14% of low energy efficient properties.
The report also concluded that income of the homeowners could not explain the differences in arrears. While more research is needed on the subject, one factor could be the significantly lower energy bills enjoyed by the owners of energy efficient homes, which could mean they are less likely to be unable to afford their mortgage payment.
It shows how important it is to consider the overall costs of living in a property - such as energy bills and council tax – before deciding to buy.
Mortgages taken out against energy efficient properties fall into payment arrears less often than energy inefficient homes, a working paper published by the Bank of England (BoE) has found. BoE examined 1.8 million outstanding mortgages in the UK at the end of 2017 and compared factors such as a borrower’s age, joint or multiple income, loan to value (LTV) differences and the size and age of a property.
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