Gatehouse Bank has launched new products in its home finance range.
The new products follow the introduction of the Bank’s first Home Purchase Plan (HPP) product — a Shariah-compliant alternative to a traditional mortgage — which was launched in December with a maximum Finance-to-Value (FTV) of 50%.
Following the pilot, Gatehouse is launching a broader range of two-year fixed term HPP products for UK home buyers with higher FTV brackets of 65% and 80%, and available to all broker partners and directly from Gatehouse.
The Bank expects the new products to significantly increase the appeal of its offering to both home buyers and those looking to refinance.
For UK-residents, the rental rate on the original 50% FTV product remains 3.19%, while 65% FTV attracts a rate of 3.49% and 80% FTV a rate of 3.69%.
Gatehouse has also expanded its HPP offering for UK expats and international residents. Its previous sole product for expats has been replaced by two two-year fixed term products with rental rates of 3.69% at 65% FTV and 3.89% at 75% FTV.
The single product for international residents has also been replaced and extended with the introduction of a 65% FTV product at 3.99% and a 75% FTV option at 4.19%.
None of Gatehouse Bank’s HPP products carry any early payment charges.
As a Shariah-compliant Bank, Gatehouse does not charge interest, instead the Bank and customer are joint owners of the property and the home buyer 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 (pictured), CEO of Gatehouse Bank, said: “The launch of our new home buyer products follows a successful pilot, which generated significant interest.
“I’m delighted that our range of Home Purchase Plans, Shariah-compliant mortgage alternatives, will now be available to all our broker partners and I am confident that they will prove to be attractive to home buyers and those looking to refinance.
“Gatehouse aims to offer competitive products together with human underwriting that will appeal to a variety of customers, whether or not they require Shariah finance. We plan to continue developing our home finance range and inject some competition into a market that has been poor at offering consumers a real alternative.”