Gatehouse Bank has increased the maximum finance amount on its Home Purchase Plans (HPPs) to £5 million to bring them in line with its buy-to-let range.
This comes alongside a raft of other improvements to its buy-to-let and HPP products.
The maximum finance available at 80% finance-to-value (FTV) across both the Bank’s HPP and buy-to-let ranges has doubled from £1 million to £2 million. In addition, maximum finance available at 75% FTV for HPP has increased from £2.5 million to £3 million.
A new buy-to-let FTV tier of 75% FTV has been introduced for UK residents, UK expats and international buyers with maximum finance to match its HPP counterparts to £3 million. Existing products for Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFBs) at 75% FTV have simultaneously been increased to £3 million, up from £1 million previously.
For finance above £3 million, both HPP and buy-to-let products will now have a maximum of 70% FTV.
The changes mean Gatehouse’s HPP and buy-to-let products carry the same maximum finance amount at each FTV tier, without any change to rental rates.
UK homebuyers with a smaller deposit have access to funding of between £100,000 and £500,000 using one of the Bank’s 90% or 95% FTV products, the latter only available to first-time buyers.
John Mace, product manager at Gatehouse Bank, said: “Increasing the maximum finance amounts available on our HPP and buy-to-let products further improves our home finance range. The changes align our HPP and buy-to-let products making it easier for brokers and customers alike.
“Islamic home finance continues to grow in the UK and these changes will enhance our competitiveness at a time when life is slowly returning to normal.”