It offers rental discount and offset of property's carbon footprint
Gatehouse Bank has launched a range of green home finance products for homeowners and landlords, becoming the UK’s first Shariah-compliant finance provider to enter this market.
Customers acquiring or refinancing a property with an EPC rating of A or B energy will receive a 10bps reduction on the rental rate.
Gatehouse will also offset the carbon impact of the property during the initial fixed term period of the product and will continue to offset the carbon footprint of the property for however long a customer remains with the bank, subject to their property meeting the required EPC rating of any green products chosen at that time.
Green home finance products have become increasingly popular in recent years, as people consider the environmental impact of their properties.
Read more: Green homes – what role will they play in UK's net zero climate strategy?
Gatehouse has also reaffirmed its commitment to reducing its own environmental impact. In October, the bank became operationally carbon neutral. It has been working to align the business with UN Sustainable Development Goals, having been a founding signatory to the United Nations Principles for Responsible Banking.
Among its actions, the bank has created green versions of its standard buy-to-let and home purchase plan ranges available to UK residents, including finance for houses in multiple occupation, and multi-unit freehold blocks, which supplement its existing Woodland Saver products.
To be eligible, properties will need to come with a suitable Energy Performance Certificate (EPC), which records its energy efficiency and environmental impact rating based on CO2 emissions.
John Mace, product manager at Gatehouse Bank, reiterated that they will continue supporting customers who are looking to reduce their impact on the environment through their products.
“The launch of our green home finance proposition is a natural progression for the bank and follows the launch in 2021 of our Woodland Saver accounts, that support UK woodland growth,” he said.
“Green home finance products have become increasingly popular as homeowners and landlords alike look to reduce the environmental impact of their properties, and we are delighted to be able to introduce our own offering to this growing market,” Mace added.
