Almost half (45%) of UK homebuyers would consider using an ethical finance provider that follows Islamic principles, finds Gatehouse Bank.
Gatehouse Bank, a Shariah-compliant UK challenger bank, claims 45% of UK buyers would consider using an ethical finance provider that aligns with Islamic principles.
The research apparently shows that UK buyers are looking to make financial decisions that reflect their ethical commitments, with 69% of respondents noting the importance of green and sustainable options when purchasing their home.
In line with this, 37% of UK buyers are most attracted to Shariah-compliant finance providers because they do not invest in unethical industries such as tobacco, gambling, alcohol, adult entertainment, and the arms industry.
The research coincides with changes to the Bank’s Home Purchase Plans, including rate reductions available to UK residents, UK expats and international residents.
The Bank has also introduced a new 95% FTV product, which has been launched in line with the research’s findings that 40% of buyers set aside a deposit of 5 to 10% when purchasing a home.
The Bank’s 95% FTV product carries a maximum finance limit of £500,000, while for 90% FTV products, the maximum finance limit has increased to £600,000. For other products, the maximum finance limit has increased from £1 million to £5 million, with specific thresholds of 80% FTV for up to £2 million, 75% FTV for up to £3 million and 70% FTV for up to £5 million.
A rate reduction of 0.65% has been applied to the Bank’s Buy-to-Let products, which include HMO and MUFB.
Gemma Donnelly, Head of Direct Home Finance at Gatehouse Bank, says: “We aim to make our ethical, Shariah-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 48% of respondents, who said they would opt for a provider who offered incentives for buying a property with a higher EPC rating.”