Gatehouse Bank has reintroduced a range of Home Purchase Plan (HPP) products with higher finance-to-value (FTV) limits.

The bank announced the relaunch of its two-year and five-year fixed-term HPPs with FTV limits of up to 95% for UK residents. The move is designed to widen access to Shariah-compliant home finance options, particularly for those with smaller deposits.

Buyers purchasing a property with a maximum finance requirement of £600,000 will now be able to access up to 95% FTV through Gatehouse’s updated offering. The same products are also available to home movers, provided they are UK residents. For those financing up to £750,000, a slightly reduced FTV limit of 90% applies.

The bank confirmed that the 95% FTV products will be available on new build houses, while new build flats will fall under the 90% FTV cap.

Gemma Donnelly, head of customer propositions at Gatehouse Bank, said the revised products are designed to support customers who may struggle to meet the higher deposit thresholds required by conventional lenders.

“At Gatehouse Bank, we recognise the challenges many first-time buyers and those with smaller deposits may have when seeking home finance products that suit their needs,” she said.

“Today’s changes have been introduced to give our customers a broader choice of options on how to fund their property purchases and allow us to support even more people with achieving their homeownership goals.”

Gatehouse’s Home Purchase Plans operate as Shariah-compliant alternatives to mortgages. Rather than charging interest, the bank buys the property jointly with the customer and gradually sells its share to the customer over time, while charging rent on the portion it still owns.