Gatehouse Bank has increased the maximum finance amount on its Home Purchase Plans (HPPs) to £5m to bring them in line with its buy-to-let (BTL) range.
This comes alongside a raft of other improvements to its BTL and HPP products.
The maximum finance available at 80% finance-to-value (FTV) across both the Bank’s HPP and BTL ranges has doubled from £1m to £2m. In addition, maximum finance available at 75% FTV for HPP has increased from £2.5m to £3m.
A new BTL 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 £3m.
Existing products for Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFBs) at 75% FTV have simultaneously been increased to £3m, up from £1m previously.
For finance above £3m, both HPP and BTL products will now have a maximum of 70% FTV.
The changes mean Gatehouse’s HPP and BTL products carry the same maximum finance amount at each FTV tier, without any change to rental rates. This will simplify the information and application process for brokers and customers.
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.
New Gatehouse Bank BTL maximum financing limits
| Product/Applicant Type | Max FTV £2m | Max FTV £3m | Max FTV £5m |
| UK & UK Expat BTL | 80% | 75% | 70% |
| UK & UK Expat HMO/MUFB | – | 75% | 70% |
| International BTL | 80% | 75% | 70% |
| International MUFB | – | 75% | 70% |
New Gatehouse Bank HPP maximum financing limits:
| Product/Applicant Type | Max FTV £2m | Max FTV £3m | Max FTV £5m |
| UK Resident | 80% | 75% | 70% |
| UK Expat | 80% | 75% | 70% |
| International Resident | 80% | 75% | 70% |
John Mace, product manager at Gatehouse Bank, said: “Increasing the maximum finance amounts available on our HPP and BTL products further improves our home finance range. The changes align our HPP and BTL 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.”
As a Shariah-compliant ethical finance provider, Gatehouse Bank’s BTL and HPP products do not carry any early payment charges.
