Overseas investors looking to acquire UK residential property now have easier access to the market following a partnership between Gatehouse Bank and fintech firm Algbra.
The collaboration addresses a significant barrier for international buyers: the requirement to hold a UK payment account when purchasing property in England and Wales. UK expats and international residents using Gatehouse Bank for home or investment property finance can now apply for a UK payment account with Algbra as part of the application process.
"We believe that access to an Algbra payment account will be highly valued by those residing overseas," said Charles Haresnape, chief executive of Gatehouse Bank. "The UK property market remains very attractive, underscored by stable rental yields, relative political stability and a strong economy historically, despite recent macro-economic challenges. Our partnership will make it easier for customers globally to access the financing they need."
The offering is available to customers who apply via the bank's direct adviser team or through its broker partners. Gatehouse released further details of the strategic partnership with the London-based, Shariah-compliant financial technology firm following an initial announcement last year.
After completing a fully digital onboarding process, customers gain access to an app-based account with 24/7 support. The account facilitates bank transfers for home finance payments using a UK sort code and account number to support direct debits. Customers can also request digital or physical cards to manage associated financial transactions.
Haresnape explained that the initiative forms the first stage of the partnership, aligned with the bank's digital transformation strategy. "It is driven primarily by the need to solve a major problem experienced by many when buying property in the UK, which is, consequently, limiting investment into the UK market, as well as our ability to trade on a global level," he said.
"Our relationship with Gatehouse, one of the UK's leading Islamic finance providers, is underpinned by our aligned vision to champion ethical financing solutions and is driven by a need to make home financing more accessible to all, including overseas homebuyers and investors," said Zeiad Idris, chief executive of Algbra.
"Our partnership will remove one of the barriers facing many overseas customers, and we are confident that the strong, natural alignment between Gatehouse and Algbra will lead to further innovative proposition developments going forward."
