According to a survey from Gatehouse Bank, which surveyed 1,000 people, 69% of respondents said that green and sustainable options were important.
Over a third – 37% – said they were attracted to Sharia-compliant home finance providers as they do not invest in industries like tobacco, gambling, alcohol, adult entertainment, and the arms industry.
Younger generations were the most familiar with Islamic finance, with 72% of 18-24-year-olds saying they would consider a Sharia-compliant provider. This compares to 26% of those aged 65 and above.
Lottie Dougill, head of intermediary sales at Gatehouse Bank, said: “It’s fantastic to see growing awareness of Sharia-compliant finance amongst consumers, particularly in younger generations, with nearly half (47%) of 18-24-year-olds keen to align their financial goals to their ethical beliefs.
“However, there is still work to be done by finance providers and brokers alike. It is important to continue addressing any lingering misconceptions around Sharia-compliant finance and thus closing any potential knowledge gap so that homebuyers are aware of all their options and can take advantage of the benefits that Islamic finance has to offer.”
Gatehouse Bank cutting rates and bringing out new deal
Gatehouse Bank has cut rates between 0.65% and 1% and has brought out a 95% finance to value (FTV) that is open to all qualifying applicants.
It has a 95% FTV deal with a maximum finance limit of £500,000, and for 90% FTV products, the maximum finance limit has gone up to £600,000.
For other products, the maximum finance limit has gone from £1m to £5m, with specific thresholds of 80% FTV for up to £2m, 75% FTV for up to £3m and 70% FTV for up to £5m.
A rate cut of 0.65% has been applied to its buy-to-let (BTL) products, which covers houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
Gemma Donnelly (pictured), head of direct home finance at Gatehouse Bank, said: “Today’s rate reductions and the launch of our 95% FTV product have been designed with the research in mind, which revealed that four in 10 (40%) UK homebuyers allocate a deposit of 5-10% when purchasing a home.
“We aim to make our ethical, Sharia-compliant products accessible to all, and hope our customers will make the most of our offering. Our green home finance products offer a reduced rental rate for customers purchasing a home with an energy-efficiency rating of A or B, with Gatehouse Bank offsetting the carbon emissions generated by the average UK property for as long as the customer remains with the bank with a qualifying property.
“This was an important provision for nearly half (48%) of respondents, who said they would opt for a provider who offered incentives for buying a property with a higher EPC rating.”
Earlier this year, it was reported that Gatehouse Bank had raised over £15,000 for Rainbow Trust.
