Does energy efficiency predict mortgage performance?

Benjamin Guin and Perttu Korhonen ()
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Perttu Korhonen: Qatar Financial Centre Regulatory Authority

No 852, Bank of England working papers from Bank of England

Abstract: We examine a unique micro-level data set on residential mortgages in the United Kingdom. Our analyses suggest that mortgages against energy-efficient properties are less frequently in payment arrears than mortgages against energy-inefficient properties. This result is robust when controlling for other relevant determinants of mortgage default including borrower income and the loan to value ratio of the mortgage. We conclude that energy efficiency is a relevant predictor of mortgage defaults.

Keywords: Credit risk; energy efficiency; green mortgages (search for similar items in EconPapers)
JEL-codes: G21 Q40 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2020-01-31
New Economics Papers: this item is included in nep-ene, nep-reg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0852

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