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Eco-Craze - bank marketing cheap buy to let loans linked to EPCs

Gatehouse Bank is the latest mortgage lender to try to woo landlords with preferential rates for buy to let properties with good energy efficiency.

Landlords acquiring or refinancing a property with an A or B energy efficiency rating will receive a reduction on the rate, and 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, subject to their property meeting the required EPC rating of any green products chosen at that time.

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Green home finance products have become increasingly popular in recent years, as people consider the environmental impact of their properties. 

While a number of providers have introduced environmentally focused home finance products, Gatehouse is the UK’s first Shariah-compliant finance provider to enter this market.

The bank says it is committed to reducing its own environmental impact and in October became operationally carbon neutral. 

It 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. 

To be eligible, properties will need to come with a suitable Energy Performance Certificate. 

 

 

Product manager John Mace says: “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.”

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    These green mortgages are fine up to a point.

    The flaw is that the property has to have a good EPC rating at the point of purchase or full remortgage to a different lender. None of them seem to give the option of dropping down onto a lower rate once EPC improvements have been made.

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    The Carbon Footprint of the property will be vastly reduced in the coming years EPC or not. The huge costs of Gas, Electricity and Oil coupled with general costs of living, food prices gone through the roof, basics like milk gone up 25 / 30% some are even using metric containers so your 4 pints is now 2 litres (smaller size). Our pockets will reduce Carbon Footprint far more than EPC, we are going to be travelling less as well.

  • George Dawes

    Carbon footprint, what a load of twaddle

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