Nationwide study shows green mortgages are less risky

nationwide branch
By Bill Thornhill
01 Apr 2021

A study of 657,000 UK mortgages undertaken by Nationwide Building Society over the past year suggests that the greener building a mortgage is secured on, the lower the risk of default. Moreover, this relationship is not affected by a borrower’s wealth, the location, or the type of property.

Speaking at the European Covered Bond Council’s Bauhaus event earlier this week, Nationwide Building Society’s senior risk analyst for secured internal ratings-based modelling, Cesar Benedi-Bozalongo, and Zsolt Jaczko, who is head of retail IRB modelling, presented interim results on the most extensive study of its kind.

They ...

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