Gatehouse Bank increases FTV limit to 75% on home finance offering
Gatehouse Bank has today introduced 75% Finance to Value (FTV) limits on its Buy-to-Let and Home Purchase Plan products.
This follows the Bank’s decision to reduce its maximum FTV to 65% on 1st April, due to difficulties in gaining physical valuations during the lockdown.
However, a change in the lockdown conditions in England means that physical valuations can recommence, and finance can once again be offered for new builds, Houses in Multiple Occupation (HMO), Multi-Unit Freehold Blocks (MUFBs) and apartment buildings with more than six storeys in this part of the UK. The maximum FTV for HMOs and MUFBs is 70%.
The changes also mean that any applications submitted before the lockdown in March for finance between 65% and 75% FTV will proceed, and new applications can be made up to the 75% FTV limit.
Finance to Value (FTV) is the Shariah-compliant equivalent of Loan to Value (LTV) for conventional mortgages.
Gatehouse continues to support existing customers who are facing financial difficulties due to Covid-19, including offering a payment holiday to homebuyers and landlords.
Roger Evans, director of Home Finance Distribution at Gatehouse Bank, said:
“We are pleased to be able to offer 75% FTV products at competitive rates for UK, expat and international customers. The return of physical valuations also means that we are now able to welcome new applications up to 75% FTV for new builds and apartment buildings above six storeys and 70% FTV for HMOs and MUFBs. We have seen considerable demand from these specialist markets since launching our initial Home Finance proposition in 2018.
“Customers who applied for finance between 65% and 75% FTV, who have not had a valuation carried out, will see their applications proceed in earnest.”