Gatehouse Bank has today reduced rates on the majority of its Buy-to-Let (BTL) and Home Purchase Plan (HPP) products.

The Shariah-compliant ethical finance provider has cut rates on its buy-to-let product range for UK residents and UK expats by up to 0.45 percentage points.

The new rates are available to UK residents and corporate entities taking buy-to-let finance fixed for five years up to 65 per cent of the property’s value. This results in a 3.99 per cent rate for finance amounts below £500,00 and 3.79 per cent for amounts above £500,000.

Buy-to-let finance now starts at 3.39 per cent for a two-year fixed up to 65 per cent of the property’s value for UK landlords, while a two-year fix for UK expats starts at 3.49 per cent.

Residential reductions

Rate reductions of up to 0.31 percentage points have also been applied to Gatehouse’s HPP products, which are available to UK residents, UK expats and international residents.

The 0.31 per cent reduction for HPP is available to international residents taking finance fixed for two years up to 75 per cent of the property’s value. This results in a 4.09 per cent rate for finance amounts below £500,000 and 3.89 per cent for amounts above £500,000. Rates for international residents now start from 3.79%.

HPP finance now starts at 3.19 per cent for a two-year fixed up to 65 per cent of the property’s value available to UK residents — a reduction of 0.25 per cent. Rates on HPP for finance above 80 per cent of the property’s value remain unchanged.

John Mace, product manager at Gatehouse Bank, said: “We are delighted to introduce this latest round of rate reductions across the majority of our Buy-to-Let and Home Purchase Plan products.

“Islamic home finance remains a growing force in the UK and these changes will enhance our competitiveness at a time when life is slowly returning to normal.”