Gatehouse Bank launches higher FTV home finance
Gatehouse Bank is today launching new home finance products available to homebuyers with a smaller deposit.
The bank’s new Home Purchase Plans (HPP) offer finance-to-value (FTV) up to 90 per cent and 95 per cent — with the latter only available to UK resident first-time buyers.
The 90 per cent FTV product will also be available to home movers and those refinancing their property. Customers will be able to access funding of between £100,000 and £500,000.
Home finance under both FTVs is available with two-year and five-year fixed rates*, starting at 4.25% for two years at 90 per cent FTV.
John Mace, product manager at Gatehouse Bank, said: “We are delighted to be expanding our home finance range to include products for first-time buyers and those with a smaller deposit. This launch follows a significant number of enquiries from customers who are looking to move into their first home or refinance.
“The property market has been incredibly busy this year, and in some regions house prices have risen steeply, making it ever-more challenging for first-time buyers to save a large enough deposit.
“We believe the launch of our ethical home finance products with higher finance to value will prove attractive and enable many first-time buyers to take their first steps onto the property ladder.”
As with Gatehouse’s other HPP products, there are no early payment charges, and every application is individually reviewed by human underwriters.
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.
The launch of the new products swiftly follows rate reductions across the full range of Gatehouse’s HPP and Buy-to-Let products for UK residents, UK expats and international residents.
Click here for the full Gatehouse Bank HPP product tables.
*As a Shariah-compliant bank, Gatehouse charges rental rates rather than interest rates and uses fund to value instead of loan to value.