Gatehouse Bank has launched its first five-year fixed Home Purchase Plan (HPP) product as well as rate cuts across its other fixed terms.

This is the longest fixed rate the bank has offered since launching Home Purchase Plans — the Shariah-compliant equivalent of a traditional mortgage — in March.

The new five-year fixed HPP comes with an initial rental rate from 2.99%. The maximum finance to value (FTV) — the equivalent of loan to value (LTV) — will be 80% for UK residents and UK Expats, and 75% for International residents.

HPPs attract no early payment charges.

In addition, Gatehouse is also improving the lowest rates available on all of its existing HPP products by up to 0.7%. The bank’s two-year fixed HPP for UK residents is reducing from 3.19% to 2.79% at 50% FTV.

In addition, the bank is also raising the amount of HPP finance available to UK expats, increasing the FTV ceiling from 75% to 80% on its two-year fixed to match the new five-year fixed product.

For both UK Expats and International residents, it is also introducing a new 50% FTV band for HPP, which it expects to prove attractive to those seeking to refinance. For UK Expats, this means rates now start at 2.99% for the two-year fixed and 3.39% for the five-year fixed. For International residents, the two-year fixed starts at 3.49% and the five-year fixed at 3.79%.

Gatehouse has also amended rates on its buy-to-let range for UK residents, UK expats and international residents. All are still available with two and five-year fixed rates. For UK residents, the two-year fixed and five-year fixed buy-to-let products have seen their rates rise 0.5% to 3.75% and 4.29% respectively.

Gatehouse’s buy-to-let products serve UK residents, UK expats, International residents and corporate entities — catering from single units to portfolios up to £5 million, including Houses in Multiple Occupations (HMOs) and Multi-Unit Freehold Blocks (MUFBs).

Charles Haresnape (pictured), CEO of Gatehouse Bank, said: “We’re seeing strong appetite in our Home Purchase Plan (HPP) and buy-to-let products. Testament to that is the way we have had to rapidly widen the scope of what we’re offering over the past six months.

“Since launching HPP and buy-to-let, the early signs are showing a demand for Shariah-compliant products from people who value good service and the way we’re committed to making decisions based on each customers’ circumstances.

“With an approvals process underpinned by a human approach, not machines, it’s never the computer that says no and we’re not turning people away for no reason, even if other providers already have.”