Homes that are more energy efficient have a lower risk of defaulting on mortgage repayments, according to reports in Bloomberg which highlight findings from the first study into energy efficiency and mortgage repayment ability.

Homeowners that have taken steps towards making their homes more energy efficient are 33% less likely to default on mortgage repayments than the average. Researchers have attributed these findings to the savings that can be seen on energy bills through improving efficiency standards.

By reducing monthly household bills, efficiency gains can make it easier for homeowners to meet their mortgage repayments, even in times of acute financial stress.

The study conducted by the University of North Carolina in partnership with energy group the Institute for Market Transformation was the first of its kind, examining whether there was a correlation between energy efficiency and mortgage repayment consistency.

Energy-efficient homes require less energy to heat and cool, and insulation works to effectively retain the heat that is generated. As a result, investing in energy-efficiency improvements can yield ongoing savings that pay for themselves in just a few years. This necessarily means that homeowners with energy saving measures in place have more money available every month, making mortgage repayments a proportionately less significant cost.