Gatehouse Bank has lowered rental rates across parts of its two-year fixed-term buy-to-let range for UK expats and international residents, in a move aimed at strengthening its position in the overseas investor market.

The changes apply to two-year fixed-term products at 80% finance-to-value and to 75% finance-to-value products for houses in multiple occupation and multi-unit freehold blocks.

The bank accepts applications from individual borrowers as well as UK-registered special purpose vehicle limited companies.

Following the repricing, rental rates on two-year buy-to-let products now start at 4.15% for UK expats and 4.16% for international residents.

The lender, which operates in line with Shariah principles, charges rental rates rather than interest. These reflect the share of the property owned by the customer, rather than a conventional interest-based structure.

OVERSEAS CLIENTS AND UK PAYMENT ACCOUNTS

Alongside the rate reductions, Gatehouse has highlighted an arrangement allowing UK expats and international residents purchasing or investing in property in England or Wales to apply for a UK payment account with Algbra as part of the home finance process.

The option is available to customers applying either through the bank’s direct adviser team or via intermediaries. It is intended to support overseas-based applicants who are required to hold a UK payment account in order to complete a property finance transaction.

Gemma Donnelly, head of customer propositions at Gatehouse Bank, said: “We know how important it is for landlords to find the home finance product that best suits their needs and at the best price.

“Today’s changes reflect our commitment to remaining competitive within the market while upholding a high level of service to those looking to invest in the highly popular UK property market.”