Gatehouse cuts buy-to-let rental rates and eases paperwork

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Gatehouse Bank has cut rental rates by 0.25% across its buy-to-let purchase plans for UK residents and simplified documentation requirements.

The reductions apply to standard and green two and five-year fixed term products, as well as finance for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).

The bank accepts applications from individuals and UK-registered special purpose vehicle limited companies.

Following the change, rates now start at 5.39% for two-year fixes and 5.65% for five-year fixes.

At the same time, Gatehouse has streamlined its application process. There is no longer a minimum income requirement for self-financing applicants, while those who already own their own home will be asked to provide fewer supporting documents.

The bank has also eased requirements for those using gifted deposits and confirmed it will accept intercompany loans as a valid source of deposit funds.

Gemma Donnelly, Head of Customer Propositions at Gatehouse Bank
Gemma Donnelly

Gemma Donnelly, head of customer propositions at Gatehouse Bank, said: “We are constantly reviewing our home finance products to ensure they are best meeting the needs of our customers and brokers and that they remain in line with the rest of the market.

“Today’s changes make the process simpler and more efficient whilst ensuring our products remain competitive and support those looking to purchase investment properties with us.”

As a Shariah-compliant lender, Gatehouse does not charge interest but instead levies rental rates reflecting the share of the property owned by the customer.

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