Gatehouse Bank has reduced rental rates on selected Home Purchase Plan and buy-to-let products for UK residents by 10 basis points (bps).

The changes apply to two-year and five-year fixed-term Home Purchase Plans at 65% and 80% finance-to-value, as well as two-year and five-year buy-to-let products at 65% FTV.

The reductions include standard and green products for individual applicants and UK-registered SPV limited companies.

Gatehouse said the lower rental rates will also apply to customers seeking buy-to-let property finance for houses in multiple occupation or multi-unit freehold blocks.

Following the reprice, Home Purchase Plan rental rates start at 5.99% for a two-year fixed term at 65% FTV and 5.95% for a five-year fixed term at the same FTV.

At 80% FTV, rates start at 6.09% for a two-year fixed term and 6.05% for a five-year fixed term.

For buy-to-let, rates start at 3.74% for a two-year fixed term at 65% FTV and 5.20% for a five-year fixed term. For HMOs and MUFBs, rates start at 3.89% and 5.34% respectively.

Gemma Donnelly (pictured), head of customer propositions at Gatehouse Bank, said: “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, reflecting the share the customer owns of the property.

A Home Purchase Plan is a Shariah-compliant alternative to a mortgage, while finance-to-value is the amount of finance expressed as a percentage of the property valuation.