Gatehouse Bank has launched a range of green home financing products for the UK. It is the first Shariah compliant finance provider in the UK to enter this market. Properties need to come with a suitable Energy Performance Certificate, which records its energy efficiency and environmental impact rating based on CO2 emissions, to be eligible for the range of products.
Customers purchasing or refinancing a property with an ‘A’ or ‘B’ energy efficiency will receive a 10bps reduction in their rental rate in addition to the bank offsetting the carbon impact of the property during the fixed-term period of the product. The Islamic bank will continue to offset the carbon footprint of the property for as long as the customer remains with the bank.
“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 account, that supports UK woodland growth,” John Mace, a product manager at Gatehouse Bank, commented.
The bank has committed to reducing its own environmental impact and became operationally carbon-neutral in October 2022 and is working to align itself with the UN Sustainable Development Goals (SDGs). Gatehouse Bank was a founding signatory to the United Nations Principles for Responsible Banking. This product range contributes specifically to SDG 7 for affordable and clean energy.
Gatehouse Bank’s earlier sustainable finance effort, the Woodland Saver account, has contributed to the planting of more than 12,500 trees around the UK since its launch in 2021 with the carbon credits registered on behalf of its customers. The trees planted will capture 3,750 tons of CO2 emissions from the atmosphere. According to the bank, that is the equivalent of charging 456.16 million smartphones or powering 681 homes for a year. The bank plants one tree for every new fixed-term and cash individual savings account opened.