Redefining the mortgage sector with energy efficiency


The mortgage process presents a significant opportunity for influencing homebuyers’ views on energy performance and encouraging energy improvements. At present, however, the calculations used by lending associations to determine how much customers can borrow do not take into account a property’s energy efficiency and resulting energy bill.


As a project partner within the LENDERS project, we were able to apply our comprehensive data and insight experience and highlight the value of energy efficient properties.


We analysed more than 40,000 energy bill records across England. We then developed a series of models that lenders could use to more accurately predict a property’s energy bill based on the information they have access to at different points during the mortgage process.  


The project established a link between better energy performance and lower energy costs. This provided evidence to lenders that using a more refined mortgage calculation could support higher maximum lending amounts for more efficient homes. A working calculator was also developed to help illustrate the benefits of energy efficiency and highlight the benefit of more energy efficient homes to prospective home buyers.  

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