Gatehouse Bank has announced a cut to rental rates on its two-year fixed term buy-to-let purchase plans for UK expats and international residents.
The reduction of 0.12% applies across the bank’s standard and green two-year products, and extends to more complex investment scenarios including Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs).
The changes take effect immediately.
The updated rates are available to individual applicants as well as UK-registered special purpose vehicles (SPVs), offering a degree of flexibility to investors with different ownership structures.
Gemma Donnelly (pictured), head of customer propositions at Gatehouse Bank, said: “We remain committed to helping our customers achieve their goals and have introduced today’s changes with this in mind, aiming to support even more people seeking Shariah-compliant finance to purchase property in England or Wales.”
As an ethical bank governed by Islamic finance principles, Gatehouse does not charge interest. Instead, it levies a rental rate that reflects the customer’s share of ownership in the property.
The decision to reduce pricing on the two-year products follows a period of relative stability in the buy-to-let market and may help boost demand among international investors, many of whom face limited options when seeking UK property finance that aligns with religious or ethical values.
The updated pricing also applies to the bank’s green range, which offers incentives for customers purchasing energy-efficient properties.
