The range’s rental rates, the Shariah-compliant alternative to interest rates, will be reduced by 10 basis points against its standard offering. It will be available to those purchasing or refinancing properties with an A or B energy efficiency rating. This applies to all residential buy to let, houses in multiple occupation (HMO), and multi-unit freehold blocks products.
All green products come with a one per cent product fee at £999 minimum.
Gatehouse says it will also offset the carbon footprint of each property for the entire fixed term, and continue for however long a customer remains with the bank, subject to EPC-related conditions at the time.
The bank became operationally carbon neutral in October 2021 as it works to align the business with the UN Sustainable Development Goals, having been a founding signatory to the United Nations Principles for Responsible Banking.
John Mace, product manager at Gatehouse Bank, said: “The launch of our green home finance proposition is a natural progression for the bank and follows the 2021 launch 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.”
