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All Buy-to-Let FAQs
Do you cater for both individual landlords and businesses?
Yes. We can provide Buy-to-Let finance for individuals, and also sole proprietors, partnerships, limited companies and on- or off-shore SPV (special purpose vehicle) structures.
Are products also available for UK Expats and International residents based overseas, as well as UK residents?
Yes. Having both an inclusive and flexible approach, we have specific products to help meet the needs of both UK Expats and International residents based overseas.
Do you provide finance for Buy-to-Let portfolios?
Yes, we can consider finance for portfolios. We have no restriction on the number of properties in a portfolio.
Do you provide finance for HMOs (houses in multiple occupation) and MUFBs (multi-unit freehold blocks)?
Yes, we have a range of options for more complex property portfolios including HMOs and MUFBs. For more information, please contact our qualified advisers.
- Call us Monday to Friday 9.00am – 5.00pm
- Complete our online form
What is the maximum FTV on Buy-to-Let?
FTV or finance-to-value is the finance amount expressed as a percentage of the property valuation. For example, if a finance product has a maximum FTV of 80%, you will need to provide at least 20% of the property value as your contribution (with the Bank contributing the other 80%).
Please refer to our Buy-to-Let products for the maximum FTV applicable.
Are early payment charges payable on Buy-to-Let finance?
No. There are no early payment charges on any Buy-to-Let purchase plans, including fixed term products. There is an account settlement fee to cover our associated costs, as set out in our Tariff of Charges. Please contact us for more information.
All FAQs
Shariah Finance View all
What is Shariah finance?
Shariah finance principles are derived from Islamic teachings and encourage ‘fair play’ that promotes fairer, more socially responsible ways of conducting financial affairs. Products and services that are ‘Shariah compliant’ are available to all and suitable for both Muslims and non-Muslims alike.
Shariah principles promote trade and enterprise to generate real wealth for the benefit of the community as a whole. It does this in a way that provides stability, is transparent and facilitates the sharing of both risk and reward in an equitable way.
Read more about the differences between Shariah and conventional finance
Isn’t Shariah finance just for Muslims?
No. Shariah compliant products and services are available to all and suitable for both Muslims and non-Muslims. In fact, many non-Muslims actively choose Shariah compliant products and services because they view them as ethical, fairer, more socially responsible and transparent, and because of the competitive range of products.
How does Shariah finance differ from conventional finance?
There are some key differences between Shariah finance and conventional finance:
• Finance and investments must not be used to support industries or activities that are against the Shariah principles. These include alcohol, tobacco, pork and non-halal meat production, gambling, adult entertainment, and arms.
• Money must be put to a good use to generate profit supported by a genuine trade or business related activity. The giving or receiving of interest (making ‘money from money’) is prohibited.
Read more about the differences between Shariah and conventional finance
How does Gatehouse Bank ensure its finance products are Shariah compliant?
We have a Shariah Supervisory Board (SSB) made up of individual Shariah experts who are independent from the bank, but are active in overseeing our operations. The SSB is formally appointed by the Board of Directors, but reports directly to the bank’s shareholders. The SSB has an oversight of the bank’s activities, including transaction documentation and other contractual obligations we may enter into.
Do only foreign banks offer Shariah compliant finance in the UK?
No, many British banks offer Shariah compliant finance products to UK customers. Gatehouse Bank is a regulated UK bank, founded in 2007 and headquartered in London - we’re not a subsidiary or branch of an overseas bank.
Why do your savings accounts pay profit not interest?
Payment and receipt of interest isn’t permitted under Shariah principles - it’s thought that money shouldn’t be generated from money. It’s also thought that money shouldn’t be left idle, but put to good use through trade that’s consistent with Shariah principles. So, we put your savings to work to earn a profit. To date, we have always paid our customers the expected profit rate.
Where is my money invested?
To comply with Shariah principles, we don’t make investments involving excessive uncertainty, gambling or speculation - criteria that many responsible investors adopt regardless of religious convictions.
Our Shariah-compliant status also means that deposits and investments we receive are never used to support non-compliant activities or sectors: this includes alcohol, tobacco, pork and non-halal meat production, gambling, adult entertainment, and arms.
Examples of eligible investments include construction projects, certain real estate investments and sukuk (sometimes known as Islamic bonds).
Savings View all
How do Gatehouse Bank savings accounts work?
How do your deposit accounts work?
Operationally, your savings account with us works similar to a conventional savings account, with one important difference – because we’re Shariah-compliant, we don’t offer you interest. Instead, we invest your funds to earn you a profit.
Why do your savings accounts pay profit not interest?
Payment and receipt of interest isn’t permitted under Shariah principles - it’s thought that money shouldn’t be generated from money. It’s also thought that money shouldn’t be left idle, but put to good use through trade that’s consistent with Shariah principles. So, we put your savings to work to earn a profit. To date, we have always generated and paid our customers the expected profit rate.
What does expected profit mean?
The expected profit rate is the rate of profit we expect to deliver to you from the returns generated by investing the funds you deposit with us. The profit we share with you is the expected profit rate we offer at the time you open your account. We monitor your account on a daily basis to make sure the expected profit rate will be achieved. To date, we have always generated and paid our customers the expected profit rate.
What happens if my expected profit rate isn’t achieved?
If we don’t think the expected profit rate will be achieved, we’ll get in touch to give you notice of the new expected profit rate. Then you have the option to keep your account with us at the new rate, or close your account and withdraw your original deposit along with all the profit earned so far. To date, we have always generated and paid our customers the expected profit rate.
Where is my money invested?
To comply with Shariah principles, we don’t make investments involving excessive uncertainty, gambling or speculation - criteria that many responsible investors adopt regardless of religious convictions.
Our Shariah-compliant status also means that deposits and investments we receive are never used to support non-compliant activities or sectors: this includes alcohol, tobacco, pork and non-halal meat production, gambling, adult entertainment, and arms.
Examples of eligible investments include construction projects, certain real estate investments and sukuk (sometimes known as Islamic bonds).
Can I make withdrawals from my Gatehouse Bank deposit?
Fixed term deposits
With fixed term deposits, you can’t withdraw funds during the term of your chosen product. Withdrawals before maturity (the end of the product term) are only allowed in exceptional circumstances, which are specified in the product terms and conditions.
Notice accounts
With notice accounts, you can withdraw funds subject to the product’s notice period – for a 31-day notice account, you need to give us notice 31 days before you want to withdraw money.
Cash ISAs
Under HMRC ISA Subscription rules you can withdraw money from this tax year or previous tax years. For fixed term accounts, withdrawals within the fixed term will be subject to a reduction in profit.
Is my money protected?
Your eligible deposits are protected by the Financial Services Compensation Scheme (FSCS), the UK’s deposit protection scheme. The FSCS can pay compensation if a bank is unable to meet its financial obligations. Each account holder is entitled to claim up to the current FSCS limit in respect of the total value of all accounts you hold with us. Currently, this is up to £85,000 per person and £170,000 for joint accounts. Any deposits you hold above these limits are not covered. Please visit www.fscs.org.uk for further information.
Is my account subject to tax deductions?
No. All profit will be paid gross, without any tax being deducted.
Do you have any products that directly support the environment?
Yes, we plant a tree on behalf of our customers for every Green Saver Fixed Term Deposit or Fixed Term Cash ISA account opened and funded, or renewed, at no cost to the customer. Find out more about how you can help grow UK woodlands as you grow your savings here.
What role does Gatehouse Bank play in investing deposits?
As a Shariah-compliant bank, we take deposits and invest the funds in a portfolio of assets that comply with Shariah principles, with the aim of generating the expected profit rate.
We also have an obligation as trustee. We’re accountable to depositors under Islamic principles of finance in the event of any negligent actions.
Opening an account
Am I eligible to apply?
The eligibility criteria are simple. You need to be a UK resident, aged 18 or older, and holding a current account with a UK bank or building society.
How do I apply for a Savings account?
All you need is the sort code and account number of your UK bank or building society account. To start your application, choose a product on our Savings page, click the "Apply now" button and follow the instructions.
How do I transfer funds from an existing ISA?
You can transfer funds from an existing ISA by applying online. At application you will be asked to provide details of your current ISA provider.
If you request a transfer of current year ISA subscriptions, the total current ISA subscription amount must be transferred.
You can still transfer funds from an existing ISA after your account is opened with us. Simply complete the Cash ISA Transfer Form, available to download from the Useful Docs section of our website.
What is a nominated account?
Your nominated account is the UK bank or building society account you use to fund your Gatehouse savings account. Your nominated account must be with a UK bank or building society. We’ll ask you for your nominated account details when you open your savings account with us. We transfer your annual or monthly profit payments - and at maturity, all your funds - to your nominated account.
Can I open more than one account?
Yes, you can open one account for each of our products, from a minimum of £1,000 and deposit up to a maximum of £1m per account, subject to the product terms and conditions.
Please note that you’re only covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person and £170,000 for money held in joint names. For more information please visit http://www.fscs.org.uk/
Can I open a joint account?
Yes, you can have up to two account holders per account. We work on the assumption that you both have equal share of the money in the account and you are both jointly responsible for the account. We usually act on a sole instruction from either one of you, unless you tell us about a dispute over the account.
To tell us about a dispute, please get in touch by phone or in writing in the first instance. From that point onwards, until you tell us otherwise, you’ll only be able to operate the account by post and include the signatures of both account holders.
Please note for our Cash ISA products, it is not possible to set up a joint account. Only one account holder is permitted.
What account opening checks do you carry out?
As with all UK savings accounts, we check your identity and address before you open an account. To make this as easy as possible for you, we do this by checking a number of electronic databases. In some cases we may need to ask you to send identification by post. We’ll tell you about this before we open your account.
Can I change my mind?
All our savings accounts have a 14 day cooling off period. If you change your mind within 14 calendar days of opening your account, please write to us and we’ll cancel your account. No notice period or charges will apply.
How do I apply for power of attorney (POA) over an account?
For POA on new and existing accounts, please call the team on 0345 600 3350 to ask for an application form. Complete and send it to us along with proof of power of attorney and any other supporting documents we’ve asked for. You also need to download or ask for a copy of our terms and conditions and the key product information for the product, and keep these for your record.
What happens if I don’t fund my account straight away?
As long as you send us your deposit by bank transfer or cheque within 14 days of applying, we’ll apply the profit rate that was shown on our website at the time you applied (or a higher rate if we have increased it).
If we don’t receive your deposit as cleared funds within 45 days of your application, we won’t open the account, and you’ll need to re-apply.
How do I know when my account is open?
Once you have successfully completed your online application we’ll send you an email confirming you’ve passed our online checks and explaining how to pay money into your account. We’ll also send you those instructions in the post.
Your account is officially open once we receive your cleared funds. The date this happens will be your account opening date, which we’ll use to calculate your profit payments and your account’s maturity date.
Using your account
How do I fund my account?
You can fund your new account by bank transfer from your nominated account or by sending us a cheque issued on UK bank or building society account.
We need to receive your initial deposit as cleared funds within 45 days of your application or the account will not be opened and you will need to re-apply. Please see the section below (Can I make more than one deposit?) for more information on additional funding.
If you make a deposit in to your account before 1pm on a working day, funds will show on your account by close of business the same day. If your deposit is made after 1pm, funds will show by close of business the following day.
If your bank has recently changed the sort code and account number associated with your nominated account, deposits you send to your Gatehouse Bank account may be rejected. In this case, please log in to your account to update your nominated account details.
Can I make more than one deposit?
Fixed Term Deposits (including Fixed Term Cash ISAs)
For fixed term deposits, if you make your initial deposit by bank transfer, you can send it in installments as long as we receive them all within a 5 working day period, and as long as we have the full deposit within 45 days of your application.
If you send your initial deposit by cheque, we can’t accept installments, so we need the full amount in one cheque. We can’t accept a combination of cheque and bank transfer.
Once the initial deposit is in your account (either in one go or installments) you can’t make any more deposits for the term of the account.
Notice and Easy Access Accounts (including Easy Access Cash ISA)
For notice and easy access accounts, you can make extra deposits at any time. The minimum initial deposit is £1,000.
How do I access my Savings account information?
To view your Savings account information at any time, use your user ID and password to log into your account here.
Will I receive a statement for my account?
No. Whilst your account is open you can view your account balance and transactions at any time by logging in to your account. You will however receive a closing statement for your account once your account is closed. If you’d rather receive a paper copy, please write to us to request one.
Will I receive a Section 975 certificate?
Shortly after 6th April each year, you will be able to view and print a Section 975 (S975) tax certificate. If you’d rather receive a paper copy, please write to us to request one. Please note: if you request a paper copy of your S975, we’ll send you one every year, and you won’t be able to download and print one online any more.
What if I forget my password?
You can reset your password by following the ‘forgotten password’ link on our login page. You can also call the team on 0345 600 3350, Monday to Friday 9.00am – 5.00pm.
Can I change my nominated account?
Yes. You can change your nominated account to another UK bank or building society account any time you like.
Log into your savings account here and follow the instructions. Changing your nominated account won’t update any other accounts which pay profit into the same account.
Please update your profit instructions by logging in and going to Account Options > Account Details > Amend.
How do I contact you?
For more information or if you need help, you can email us on info@gatehousebanksavings.com, call the team on 0345 600 3350, or write to us at Gatehouse Bank, PO Box 861, Wallsend, NE28 5BP.
What if I need to change my personal details?
Use your user ID and password, log into your account here and select 'Change Details'. Click on 'Personal Details', then select the option you need and follow the instructions.
What happens to my deposit on maturity?
Fixed Term Deposits and Fixed Term Cash ISAs only - We will contact you 25 days before your account is due to mature to let you know what your maturity options are. Once you’ve decided, you can tell us what you want to do by logging into your account and selecting your maturity option.
It’s simple to open a new fixed term account, or withdraw your full deposit. If you don’t tell us what you want to do by your maturity date, we’ll transfer your deposit into an appropriate easy access account, where you can get to it any time you like.
How do I make a complaint about my savings account?
To make a complaint about your savings account?, please email us at info@gatehousebanksavings.com or call the team on 0345 600 3350, Monday to Friday 9.00am – 5.00pm. You can also write to us at Gatehouse Bank, PO Box 861, Wallsend, NE28 5BP.
We will try to resolve your complaint as quickly and fairly as possible. Please see our complaints policy for more information. If you’re still unhappy, you can contact the Financial Ombudsman Service (FOS) at complaint.info@financial-ombudsman.org.uk.
What do I do if I suspect fraud on my account?
Please get in touch immediately. Call us on 0345 600 3350 Monday to Friday 9.00am – 5.00pm, or alternatively email us on info@gatehousebanksavings.com
What happens in the event of the death of an account holder?
Please get in touch at your earliest convenience. Call us on 0345 600 3350 Monday to Friday 9.00am – 5.00pm, or email us on info@gatehousebanksavings.com
Our Green Saver Accounts
Do customers pay for the tree out of the return on their savings?
No. Gatehouse Bank is paying for the tree planting on behalf of our customers and this does not impact the expected profit rate on your savings account.
Where will the Green Saver trees be planted and can I choose where my tree is planted?
Trees planted through the Gatehouse Bank Green Saver tree planting scheme are located within four specific UK woodland creation projects, through our planting partner Forest Carbon. Trees are allocated to project sites in line with environmental requirements and therefore you are unable to request a specific woodland project for your tree.
What type of trees will be planted?
Trees are from a range of woodland species including Oak, Hazel and Birch, specifically chosen to be ideally matched for the habitat and environment where they are planted.
Will the trees capture carbon emissions?
Yes. The trees planted in these new woodlands are expected to capture carbon dioxide over their lifetimes. These woodlands will be independently verified over the long term to establish how much carbon dioxide they are capturing. The projects are registered on the publicly available UK Land Carbon Registry. More information can be found in the Terms & Conditions.
When will my tree be planted?
All trees are planted by our partner Forest Carbon in line with the seasonal planting requirements of UK woodlands. Once planted, all growing trees and the carbon emissions they sequester are independently verified under the Woodland Carbon Code.
Can I visit the woodlands?
If you wish to see one of the woodland projects in action you can visit the Lowther Whale Project which is situated in the Lake District National Park and adjacent to public walkways. Please contact the team at Gatehouse Bank for more information.
Can you tell me in which woodland project my tree is planted?
We can guarantee that your tree will be in one of the four specified UK woodland projects. We closely monitor the number of trees planted but do not assign individual customer trees to specific locations.
How do I ensure a tree has been planted on my behalf?
Gatehouse Bank has entered into an agreement with woodland project developer Forest Carbon to plant a tree for every Green Saver account opened or renewed. Green Saver woodland projects are verified by the UK Government’s Woodland Carbon Code which assures that the right trees have been planted in the right place. We will publish an annual report, available on our website, that details the number of trees planted and the carbon sequestered by the Green Saver scheme.
Is the planting independently assured?
Yes. Our Green Saver tree planting scheme is certified by the UK Government Woodland Carbon Code, which gives assurance that each woodland scheme will deliver the benefits claimed, and that that woodland represents genuine new planting.
Home Finance View all
What is a home purchase plan?
A home purchase plan is a Shariah-compliant mortgage alternative. You can use it just like a conventional mortgage to buy or refinance your home.
How does a home purchase plan work?
Your home purchase plan works in a similar way to a mortgage. Fixed and variable rates may be available, except they are not rates of interest but rental rates.
With a Shariah compliant home purchase plan, you buy the property jointly with us. Your deposit is your stake, we hold the remaining stake and the property is registered in our name. We instruct a solicitor, who works alongside yours during the purchase process.
Your monthly payment is made up of either rent if you have a rent-only agreement, or rent and acquisition if you have an acquisition and rent agreement. Rental rates are calculated to reflect the shares you and we own in the property.
- Acquisition and Rent product - This is the Shariah compliant alternative to a conventional repayment (capital & interest) mortgage. Over the agreed finance term, you make a monthly payment consisting of a rental payment (for use of our share of the property) and an acquisition payments (to increase your share in the property). With each acquisition payment, your share increases, and ours diminishes. The makeup of your monthly payment changes over time. As our share of the property gets smaller, so does the rental portion of your payment, so more and more of the monthly payment goes towards the acquisition of our share. When all the payments are made, the property transfers into your name.
- Rent Only product - This is the Shariah compliant alternative to a conventional interest-only mortgage. Over the agreed finance term, you make monthly rental payments (for use of our share of the property), but no acquisition payments, so your share doesn’t go up just by making your monthly payments. You undertake to acquire our share of the property at the end of the finance term. If you have a rent-only product, it’s your responsibility to look after any financial arrangements that you expect will provide a lump sum big enough for you to buy our share at the end of the product. When our entire share is acquired, the property transfers into your name
With both types of products, you can sell the property at any time, just like you can with a conventional mortgage. There are no early payment charges, but there is an account settlement fee. When you sell, you only have to pay the original cost of the property contributed by the bank, less any acquisition payments you may have made. Any increase in the property value benefits you, not us, but just like with a conventional mortgage, a decrease in value also affects you.
If Gatehouse Bank doesn’t charge interest, why do you advertise ‘%’ rates?
We advertise percentage rental rates so customers can compare our rates with those charged by other banks and building societies for similar products.
What is meant by the terms ‘rent only’ and ‘acquisition and rent’ products?
A rent-only product is a Shariah compliant alternative to a conventional interest-only mortgage.
An acquisition and rent product is a Shariah compliant alternative to a conventional repayment (capital & interest) mortgage.
Home Finance - What happens if I want to sell the property?
You can sell the property at any time, just like you can with a conventional mortgage. There are no early payment charges. When you sell, you will purchase the bank’s outstanding share at the original cost of the property contributed by the bank (less any acquisition payments you may have made), because we commit to selling our share of your property at a set price: the amount that we contributed at the start of the agreement.
Will you benefit from any increase in value if I sell the property?
No. Our products are designed so that any increase in value benefits you, not us. We commit to selling our share of your property at a set price: the amount that we contributed at the start of the agreement less any acquisition payments you may have made. But just like with a conventional mortgage, a decrease in value also affects you. This is because you have given us an undertaking to purchase our share at the original cost of the property contributed by the bank.
In addition, please view please view our Home Purchase Plan video.
Can I buy the bank’s share sooner than originally agreed?
Yes. You can buy us out sooner than agreed without any early payment charge. There is an account settlement fee, as set out in our Home Purchase Plan Tariff of Charges. Please contact us for more information.
Home Finance - Why are there two sets of solicitors involved?
Because there are two buyers involved: you and the Bank. We have separate solicitors so that we are independently represented without conflicts of interest that could arise if the same solicitor acted for both parties.
What does FTV mean?
FTV or finance to value is the amount of finance expressed as a percentage of property valuation. For example, if a finance product has a maximum FTV of 80%, that means we will contribute up to 80% of the property valuation, and you will need to contribute at least 20% as your deposit. The maximum FTV for each product is stated on the product pages. In conventional finance this might be referred to as LTV or Loan to Value.
What happens at the end of my fixed term period?
You will have a number of options available.
- You will be offered a product from the range available to new or existing customers
- You can revert to our Standard Variable Rate (SVR)
- You can refinance to another provider, although we hope that our service provided and products available will mean that you don’t feel the need to do this
Can you provide advice and do you charge a fee?
We provide a full advice service for direct customers and we don’t charge fees for advice. We only advise on Gatehouse Bank products.
- Call us, Monday to Friday 9.00am – 5.00pm
- Complete our online form
How do I apply for Home Finance?
Please get in touch with the team to start your application
- Call us, Monday to Friday 9.00am – 5.00pm
- Complete our online form
What happens after I apply and what is the process?
- You speak to a qualified adviser on the phone to find out in principle how much finance we can provide for you. If required, we can provide a Decision in Principle (DIP) to give you and the seller/estate agent some comfort that you can obtain the finance required to purchase your dream property.
- You find a property you like and agree a price with the seller.
- You call us to complete the full application and supply the supporting documents we ask for.
- Once your application and your supporting documents are in order, there will be a property valuation that you will need to pay for in advance.
- Once we have satisfactory property valuation, we make you an offer of finance.
- We each instruct our solicitors, who work together to complete the conveyancing process.
- Legal completion takes place, and then you can pick up keys to the property.
Home Finance - How long does the process take?
It’s usually 3-5 weeks from the initial application to an offer of finance, as long as you send us the documents we need promptly, and we get an acceptable property valuation.
It’s usually another 3-5 weeks from the offer of finance to legal completion as long as all the right documents are submitted to the solicitors and satisfactory legal reports are received.
How much Home Finance can I have?
It depends on your individual circumstances. We need to do a calculation, taking into account your income and any financial commitments you already have. Our qualified advisers can tell you in principle how much finance we could provide, or you can get an estimate for yourself with our handy online calculator.
Calculator: How much finance can I have?
Home Finance - How much will it cost me?
It depends on the amount of finance you have and how long it takes you to purchase our share. Our advisers can discuss the cost in more detail, or your can get an idea for yourself with our handy online calculator.
Calculator: How much will it cost me?
Can I make additional payments to my home purchase plan (HPP)?
If you choose a fixed term product, no additional payments can be made during the fixed term period. However, following the fixed term period you may make additional acquisition payments subject to a minimum payment of £2,000 and an administration fee of £25. Please note that:
- Acquisition payments must be made during the first week of every calendar quarter in which a rental review date falls, i.e. January, April, July and October.
- When an acquisition payment is made, this will reduce the amount of finance outstanding and therefore the remaining term of your HPP.
- Once you have made an acquisition payment the payment will be applied to your HPP account immediately.
I’m self-employed, can I still get finance?
Yes, we can consider your application if you have at least 1 year’s accounts, subject to affordability.
What is the minimum and maximum amount of finance available?
Our minimum and maximum amounts of finance available for both UK and non-UK residents can be found here, along with other key eligibility criteria.
What is the minimum property value for a home purchase plan?
The minimum property value for our Home Purchase Plans for both UK and non-UK residents may vary by the product chosen, details of which can be found here.
Can I switch my existing home finance to Gatehouse Bank?
Yes, we can consider applications for refinancing. Please speak to one of our advisers.
- Call us, Monday to Friday 9.00am – 5.00pm
- Complete our online form
Can I buy my council Right to Buy property?
Sorry, we don’t currently offer finance for Right to Buy purchases.
Can you provide finance on an ex-local authority property?
We can consider certain types of ex-local authority properties. Please speak to one of our advisers.
- Call us, Monday to Friday 9.00am – 5.00pm
- Complete our online form
Can I get finance before I have found a property?
We can provide a decision in principle (DIP) which shows how much finance the Bank would be willing to provide in principle, based on the how much finance you’re looking for and how much you are willing to contribute to the purchase.
Are early payment charges payable on home purchase plans?
No. There are no early payment charges on any home purchase plans, including fixed term products. There is an account settlement fee to cover our associated costs, as set out in our Home Purchase Plan Tariff of Charges. Please contact us for more information.
What about property valuation and survey reports?
We have to obtain report on the value of the property you want to buy. We use a Standard Valuation Report for the sole purpose of assessing whether the property is adequate as security for the finance arrangement we’re proposing to enter into with you. It’s designed to give us the information we need to decide whether to finance the property.
It’s important to know that a Standard Valuation Report may not reveal defects in the property, and it’s important that you don’t rely on it in any way when deciding whether to go ahead with the purchase. We recommend you get a more detailed report, so you can decide if the property is suitable for you. There are two main types of more in-depth inspection - a Homebuyers Report and a Building Survey Report. You can learn more about them on this government website www.moneyadviceservice.org.uk.
Do I have to take out building insurance?
Yes, it’s a condition of the finance we provide that you have suitable buildings insurance in place.
Will I pay stamp duty?
Stamp duty may be applicable to your purchase. For more information, please refer to www.gov.uk/stamp-duty-land-tax/residential-property-rates
What happens if I can’t keep up with my payments?
We understand that circumstances can change for many different reasons, sometimes causing financial hardship. All we ask is that you talk to us as soon as possible if you find yourself in financial difficulty. Talking about payment problems early on often makes them easier to resolve.
What happens if I die during the finance term?
We appreciate that sorting out these issues may be the last thing on your mind. If you would like to talk to someone to help you through the steps you need to take, please contact us.
You should be advised by your own solicitor on what will happen if you die during the finance term. Ordinarily, in the event of death, a customer’s share in the property would pass to their heirs in accordance with a will or the rules of intestacy. It is important to note, that in the event of non-payment or default under the terms of the Diminishing Musharaka Agreement, this would entitle the Bank to require the heirs to purchase the Bank’s share of the property for the outstanding amount of the Bank’s contribution (finance amount), enforce security or take possession of the property. However, in these unfortunate circumstances, the Bank would engage with the heirs to see if they wish to take over the finance, subject to meeting our relevant criteria at the time, or arrange an orderly sale of the property to settle the finance.