The lender said its two-year fixed term Home Purchase Plan would appeal to those looking to refinance and homebuyers with a significant deposit.
The bank offers UK homebuyers a two-year fixed term with an initial rental rate of 3.19%, reverting to the bank’s standard variable rate, which is currently 5.50%, after the fixed term.
The product has a maximum finance-to-value, equivalent to loan to value (LTV), rate of 50% and will initially be available directly from the bank and through broker One Option Finance.
It will also be available to expats at a 3.75% initial rental rate and international customers at a 3.99% initial rental rate.
Full range next year
Charles Haresnape, CEO of Gatehouse Bank (pictured), said that launching the first home purchase product was a milestone for the bank.
“We aim to bring additional competition to the home finance market and, due to our Shariah principles, we will not be charging early settlement charges on our Home Purchase Plans, which we believe will prove to be a popular feature with many homebuyers,” he said.
“Gatehouse plans to offer competitive products together with human underwriting that will appeal to all homebuyers, Muslims and non-Muslims alike.
“I am confident that our pilot will be successful and we are planning to launch a fuller range of products early next year.”