Gatehouse Bank has launched a range of limited-edition refinance products for UK residents with no product or application fees.

The Shariah-compliant Home Purchase Plan (HPP) products are available up to 80% Finance-to-Value (FTV) on existing properties and new-build houses, with new-build flats available up to 75% FTV.

Customers can access finance of up to £5m and receive one free standard property valuation as part of the application.

Rental rates start at 5.63% for a five-year fixed term and 5.68% for a two-year fix.

ALTERNATIVE TO CONVENTIONAL REMORTGAGE

Home Purchase Plans provide a Shariah-compliant alternative to conventional mortgages. Rather than charging interest, Gatehouse uses rental rates reflecting the customer’s share of the property.

The new refinance range is not limited to customers already using Islamic property finance.

Gatehouse says it can be used by customers who own their property outright, currently have finance with another Shariah-compliant provider or have an existing conventional mortgage.

The launch is aimed at providing another refinancing option for homeowners approaching the end of their current fixed-rate deal.

‘GREATER CHOICE AND FLEXIBILITY’

Gemma Donnelly (main picture, inset), head of customer propositions at Gatehouse Bank, said: “We are seeing growing demand for refinancing products that give customers greater choice and flexibility as they come to the end of their current fixed-rate deals.

“Regardless of whether a customer owns their home outright, currently finances it through a Shariah-compliant provider, or has a conventional mortgage, we are committed to helping people across the UK access competitive, straightforward and cost-effective property finance that meets their needs.”