According to the shariah-compliant lender, the reductions apply to the Bank’s 2 Year and 5 Year Fixed Rate products that are available immediately today to UK Residents, UK Expats, International Residents and Corporate Entities.
Shariah-compliant banks do not charge interest. Instead the Bank and customer are joint owners of the property and the customer pays rent on the share of the property that the Bank owns. Gatehouse entered the Buy-to-Let market at the start of 2018 and has seen growing demand from customers attracted to its human approach to underwriting. The Bank also offers Home Purchase Plans (HPP) — a Shariah-compliant alternative to a traditional mortgage.
For UK Residents, the 2 Year and 5 Year Fixed rate BTL products today see their rates fall by 0.46% and 0.40% respectively. This has taken the new rate to 3.29% for a 2 Year Fixed, and 3.89% for the 5 Year Fixed. The products for UK Residents offer up to 80% Finance-to-Value (FTV), with no early payment charges.
The 2 Year Fixed for UK Expats has been cut by 0.40% to 3.89%, while the 5 Year Fixed has been reduced by 0.34% to 4.45%. Both are available up to 75% FTV.
Meanwhile, the reductions for International Residents mean a 2 Year Fixed is now 4.14% (reduced by 0.40%) and a 5 Year Fixed is 4.69% (down by 0.35%).
Gatehouse’s BTL products can cater for single units or for portfolios up to £5 million, including Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs).
Paul Stockwell, Chief Commercial Officer of Gatehouse Bank, said: “We have seen strong appetite for our Buy-to-Let products and delighted to now further reduce rates across our range. We take a human approach to our applications process, meaning a computer does not have the final say on whether we approve someone for a Buy-to-Let product or not.
This has proved to be particularly attractive to the UK Expat community who are very much underserved by the wider market and can take advantage of our flexibility to secure the finance they deserve.”
