Gatehouse Bank has sold the economic interest in a £405m home purchase plan portfolio to Waterfall Asset Management in what it says is the largest Islamic home finance sale completed in the UK.
The bank will continue to manage the portfolio, while customers’ terms and conditions will remain unchanged.
Gatehouse entered the home purchase plan market in December 2018 and has since expanded its residential property finance range with additional fixed-term products, refinancing, higher finance-to-value options and green home finance.
It continues to offer residential property finance to UK residents, expatriates and international buyers purchasing homes or investment properties in England and Wales.
The bank also played a leading role in securing changes under the Finance Act 2025 that equalised the tax treatment of Islamic home finance with conventional finance.
The transaction forms part of Gatehouse’s long-term growth strategy and is the first of several planned back-book sales or securitisations intended to allow the bank to recycle capital. Standard Chartered advised on the sale.
Charles Haresnape (pictured), chief executive officer at Gatehouse Bank, said: “Today’s announcement is an important milestone in Gatehouse Bank’s history. It is a testament to the strength of our residential property finance proposition, its continued popularity with customers in the UK and the opportunities it can present for investors globally.”
“We plan to reinvest the capital raised from today’s historic agreement with Waterfall Asset Management into enhancing our offering for customers and pursuing growth opportunities for the Bank, as we look towards the future of the organisation.”
James Cuby, head of Europe at Waterfall Asset Management, added: “Waterfall is pleased to partner with Gatehouse Bank on this transaction, which underscores our commitment to deliver bespoke regulatory capital and balance sheet solutions that help optimise capital efficiency and support continued growth in mortgage origination.”
Michael Rose, executive director, debt capital markets at Standard Chartered, said: “This transaction demonstrates the increasing depth and maturity of the market for Shariah-compliant assets in the UK. The strong investor interest highlights the growing appeal of high-quality Islamic finance portfolios as an institutional asset class.
“We are delighted to have supported Gatehouse Bank on a transaction that broadens access to this market and creates an important precedent for future capital flows into the sector.”
