Gatehouse Bank reduces rental rates on selected Home Purchase Plan and Buy-to-Let products for UK residents
Gatehouse Bank has today announced a 0.10% rental rate* reduction on selected residential property finance products available to UK residents.
The changes apply on two and five-year fixed-term Home Purchase Plans** (HPP) at 65% and 80% finance-to-value*** (FTV) and on two and five-year Buy-to-Let (BTL) products at 65% FTV. This includes standard and green products for individual applicants as well as UK-registered SPV**** Limited Companies. The reduced rates will also apply for customers seeking Buy-to-Let property finance for Houses in Multiple Occupation (HMOs) or Multi-Unit Freehold Blocks (MUFBs).
Following today’s reprice, the starting rental rates on Gatehouse Bank’s home finance products for UK residents are below:
Home Purchase Plans
| FTV Limit | Two-Year Fixed Term | Five-Year Fixed Term |
| 65% | 5.99% | 5.95% |
| 80% | 6.09% | 6.05% |
Buy-to-Let
| FTV Limit | Two-Year Fixed Term | Five-Year Fixed Term |
| 65% | 3.74% | 5.20% |
| 65% HMOs/MUFBs | 3.89% | 5.34% |
Gemma Donnelly, head of customer propositions at Gatehouse Bank, commented: “We know how important it is for prospective homebuyers and landlords to receive a competitive rate on a product that suits their individual needs.
“We hope that today’s rate reduction will help even more people within the UK to access the financing they require as they look to achieve their property ownership goals.”
*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.
***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.
****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.