Gatehouse Bank raises income multiples across home purchase plans

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Gatehouse Bank has increased its finance-to-income ratios across its home purchase plan range, allowing some customers to apply for residential property finance of up to six times gross income.

The enhanced ratios apply to UK residents, UK expats and international residents seeking finance for residential property in England or Wales.

The Shariah-compliant bank said the ratios available would depend on gross household income and finance-to-value, subject to affordability checks and policy criteria.

Customers with household income of more than £75,000 can now access up to six times income where finance-to-value is up to 80%. This falls to 5.5 times income where finance-to-value is between 80.01% and 90%, and 4.49 times income above 90.01% finance-to-value.

For applicants with household income between £50,000 and £74,999, the maximum finance-to-income ratio is 5.5 times income up to 80% finance-to-value, five times income between 80.01% and 90%, and 4.49 times income above 90.01%.

Those earning between £35,000 and £49,999 can access up to five times income at up to 80% finance-to-value, with 4.49 times income available above that level. Applicants earning up to £34,999 remain eligible for up to 4.49 times income across all finance-to-value bands.

Finance-to-income is the amount of finance available expressed as a multiple of gross annual household income, broadly equivalent to loan-to-income in conventional mortgage lending. Finance-to-value is the amount of finance expressed as a percentage of the property valuation, similar to loan-to-value.

Gemma Donnelly (pictured), head of customer propositions at Gatehouse Bank, said: “Helping as many people as possible to access, or move up, the property ladder is a key focus for us at Gatehouse Bank.

“Whether our customers are a first-time buyers or current homeowners looking to refinance an existing property, today’s changes will ensure that there are more options available to those who need them.”

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