The LENDERS project has developed this estimator tool to help predict householder fuel bills and to show how they are likely to be affected by the energy performance of the home, as indicated by the property’s Energy Performance Certificate (EPC).

Currently, the process of estimating how much a homebuyer can afford to repay each month for their mortgage does not take into account the energy performance of the home being mortgaged. Adjusting the method to reflect likely fuel costs predicted by this estimator tool, if adopted by the mortgage industry, would result in those looking to buy lower energy performance homes being able to borrow more, and those looking to improve energy performance to demonstrate savings and therefore potentially access additional borrowing.

Perhaps most importantly, creating a strong link between energy and borrowing limits at a key step in the homebuying process has significant potential to positively influence behaviours to help carbo reductions, given privately owned residential properties represent approximately 15% of the UK’s overall carbon emissions.