Gatehouse Bank increases Home Purchase Plan limit to 75% of property’s value
Gatehouse Bank is introducing 75% Finance to Value (FTV) limits on its Buy-to-Let and Home Purchase Plan products.
Finance to Value (FTV) is the Shariah-compliant equivalent of Loan to Value (LTV) for conventional mortgages.
This follows the Bank’s decision to reduce its maximum FTV to 65% on 1st April, due to difficulties in gaining physical valuations during the lockdown.
The easing of lockdown in England means that physical valuations are now possible, and finance can once again be offered for new builds, Houses in Multiple Occupation (HMO), Multi-Unit Freehold Blocks (MUFBs) and apartment buildings with more than six storeys in this part of the UK.
The maximum FTV for HMOs and MUFBs is 70%.
The changes also mean that any applications submitted before the lockdown in March for finance between 65% and 75% FTV will proceed, and new applications can be made up to the 75% FTV limit.
Gatehouse continues to support existing customers who are facing financial difficulties due to Covid-19, including offering a payment holiday to homebuyers and landlords.
Roger Evans, director of home finance distribution at Gatehouse Bank, said: “We are pleased to be able to offer 75% FTV products at competitive rates for UK, expat and international customers. The return of physical valuations also means that we are now able to welcome new applications up to 75% FTV for new builds and apartment buildings above six storeys and 70% FTV for HMOs and MUFBs.”