Gatehouse Bank has partnered with financial technology firm Algbra in a move designed to address a longstanding obstacle faced by overseas buyers of UK property.
The bank said the arrangement with London-based, Shariah-compliant Algbra will allow UK expats and international residents purchasing a home or investment property in England and Wales to apply for a UK payment account as part of the home finance process.
The option will be available to customers applying through Gatehouse Bank’s direct adviser team, as well as those introduced by broker partners.
PRACTICAL CHALLENGES
The agreement is intended to tackle one of the most common practical challenges facing overseas buyers – the requirement to hold a UK payment account in order to complete and manage a property transaction.
Under the partnership, eligible customers will be able to open an Algbra payment account to manage their home finance payments. The account is opened through a fully digital onboarding process and provides app-based access, with a UK sort code and account number to support direct debits and bank transfers.
Customers will also have the option to request either a digital or physical card to help manage related transactions linked to their property finance.
DIGITAL TRANSFORMATION
Charles Haresnape, chief executive officer of Gatehouse Bank, said: “This initial offering is the first stage of our partnership with Algbra, in line 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.
“We believe that access to an Algbra payment account will be highly valued by those residing overseas.
“The UK property market remains very attractive.”
“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.”
ALIGNED VISION
Zeiad Idris, chief executive officer of Algbra, added: “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.
“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.”
