Gatehouse launches Shariah-compliant green home finance range

Customers acquiring or refinancing a property with an A or B energy efficiency rating 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.

In addition, the Bank 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.

Gatehouse says it is the UK’s first Shariah-compliant finance provider to enter this market.

The Bank has created green versions of its standard buy-to-let and Home Purchase Plan ranges available to UK residents including finance for HMOs and MUFBs.

To be eligible, properties will need to come with a suitable EPC, which records its energy efficiency and environmental impact rating based on CO2 emissions.

John Mace, product manager at Gatehouse Bank, commented: “We are committed to supporting customers that are looking to reduce their impact on the environment through our 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.

“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.

“On top of the rental discount for the most energy-efficient homes, we’ll offset the property’s carbon footprint for the entire fixed term of the product, helping our customers to further reduce their carbon footprint.”