Gatehouse Bank reduces rental rates on selected Home Purchase Plans and Buy-to-Let products for UK Residents

Gatehouse Bank has today reduced rental rates* across selected Home Purchase Plans (HPP)** and Buy-to-Let (BTL) products for new and existing customers who are UK Residents.

These reductions will cover selected standard and green two-year and five-year fixed term products for individual applicants as well as UK-registered SPV*** Limited Companies.

For UK Residents seeking HPP products, rental rates will be reduced by 0.25% on two-year and five-year fixed term products up to a maximum Finance to Value (FTV)**** of 80%. For UK Residents and UK-registered SPV Limited Companies seeking BTL products, rental rates will be reduced by 0.10% on two-year fixed term products and 0.20% on five-year fixed term products up to a maximum FTV 80%.

In addition, Gatehouse Bank is updating its stress rates across two-year fixed term HPP and BTL products to boost affordability for customers.

Gemma Donnelly, Head of Customer Propositions at Gatehouse Bank, commented: “We are constantly reviewing our home finance products to ensure they best suit the needs of our customers and are competitive within the market.

“Today’s changes will benefit both new and existing UK customers, ultimately helping more people to achieve their homeownership goals.”

A full list of Gatehouse Bank’s Home Purchase Plans is available here, while a list of its Buy-to-Let products is available here.

*As a Shariah-compliant bank, Gatehouse charges rental rates rather than interest rates, which reflect the share the customer owns of the property.

**A Home Purchase Plan is a Shariah-compliant alternative to a mortgage.

***A Special Purpose Vehicle (SPV) is a company structure set up for a given purpose, with its own assets and liabilities and its own legal status. Within property investment they are formed for purchasing and holding residential buy to lets or for property development.

****Finance to Value (FTV) is the amount of finance expressed as a percentage of the property valuation, which may be referred to as Loan-to-Value (LTV) in conventional finance.