The portfolio balance totalled £405m.
It was the largest Islamic home finance sale in the UK, according to Gatehouse Bank.
It added that the sale was the first of several planned back book sales and securitisations over the coming years. Standard Chartered advised on the portfolio sale.
Charles Haresnape, CEO of 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 of debt capital markets at Standard Chartered, said: “This transaction demonstrates the increasing depth and maturity of the market for Sharia-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.”
