"Since launching HPP and BTL, the early signs are showing a demand for Shariah-compliant products"
The new five-year product has is available from 2.99% up to a maximum Finance to Value of 80% for UK residents and UK Expats and 75% for international residents.
Gatehouse has also reduced rates across its existing HPP range by up to 0.7%. The Bank’s two-year fixed HPP for UK residents is reducing from 3.19% to 2.79% at 50% FTV.
In addition, the Bank is also raising the amount of HPP finance available to UK Expats, increasing the ceiling from 75% to 80% on its two-year fixed rates to match the new five-year product.
For both UK Expats and international residents, Gatehouse is also introducing a new 50% FTV band. For UK Expats, two-year rates now start at 2.99% and five-year rates at 3.39%. For international residents, rates start from 3.49% fixed for two years and 3.79% fixed for five years.
Elsewhere, Gatehouse has increased rates on its buy-to-let range. For UK residents, two and five-year products have seen rates rise by 0.5% to 3.75% and 4.29% respectively.
As a Shariah-compliant Bank, Gatehouse does not charge interest, instead the Bank and customer are joint owners of the property and the customer pays rent on the share of the property that the Bank owns.
Gatehouse’s HPP products offer customers two options; Acquisition & Rent (the equivalent of a conventional capital & interest mortgage) and Rent Only (the equivalent of a conventional interest only mortgage).
Charles Haresnape, CEO of Gatehouse Bank, said: “We’re seeing strong appetite in our Home Purchase Plan and buy-to-let products. Testament to that is the way we have had to rapidly widen the scope of what we’re offering over the past six months.
“Since launching HPP and BTL, the early signs are showing a demand for Shariah-compliant products from people who value good service and the way we’re committed to making decisions based on each customers’ circumstances.
“With an approvals process underpinned by a human approach, not machines, it’s never the computer that says no and we’re not turning people away for no reason, even if other providers already have.”
