Gatehouse Bank Mortgages

Gatehouse are a shariah compliant UK bank providing mortgages.

Different to a conventional mortgage when you buy a property you buy jointly with the bank, where your deposit is a stake in the purchase.

The bank is registered as the owner of the property but holds the property for itself and you as beneficial owners. Instead of paying interest you lease part of the property owned by the bank and pay monthly rental payments over the agreed finance term. Once all payments are made full ownership of the property transfers to you.

Gatehouse have been around since 2007 and are the fastest growing bank of its kind in the UK. They are regulated by the PRA and the FCA.

Criteria for borrowing from Gatehouse Bank

Are you eligible?

Wherever you live, you can apply for home finance if you meet these criteria:

• Buying property in England or Wales
• Seeking finance of at least £200,000
• Minimum age 18 years (UK residents) / Minimum age 21 years (Expat/International residents)
• Earning at least £15,000 (UK residents) / £25,000 (Expat/International residents)

First Time Buyers

In the current property market, it can be hard for first time buyers to get a foot on the ladder. Many lenders, such as Atom Bank offer mortgage products specifically designed for first time buyers.

Buy to Let with Gatehouse Bank

As new btl products come onto the market, it can be a good idea to move your mortgage to a different provider to get a better deal.

This can also allow you to borrow more, so you can pay off your existing mortgage and have some cash left over.

Switching buy to let mortgage providers can be relatively simple, with many lenders offering to help you with some or all of the fees involved.

Buy to Let service includes:

• Portfolios welcome – no limit on the number of properties (maximum finance £5m)
• Finance available to individuals (employed and self-employed) and corporate entities which include Limited Companies, LLPs (Limited Liability Partnerships) and SPVs (Special Purpose Vehicles)
• Day one refinances from cash and bridging purchases permitted
• Finance available for Houses and Flats (including new build), as well as HMOs (Houses in Multiple Occupation) and MUFBs (Multi-Unit Freehold Blocks)
• Available to first time landlords where existing property ownership is not a requirement
• Finance provided up to 80% of the property value up to £1m, and up to 70% of the property value up to £5m, over a maximum 30-year term for UK residents or 25-year term for UK Expats and International residents
• Personal income can be used for rental top ups where a shortfall exists (terms apply)
• No early payment charges on any product

Loan to value ratio

How much you will be able to borrow as a mortgage is likely to be influenced by a number of factors, including how much you earn.

Another important consideration is your loan to value (LTV) ratio. This shows how the amount you want to borrow relates to the market value of your property.

So, if you want to borrow £50,000 as a mortgage on a £100,000 house, your LTV would be 50%.

If you then wanted to take out a second charge mortgage for a further £25,000, this would make your LTV 75%.

The higher your LTV, the higher interest rates most lenders will tend to offer.

Find the best deals on mortgage rates

The mortgages market is diverse, with many different providers and types of mortgages to choose from.

This can make it difficult to know which offers the best value for you. Our mortgage calculator takes a lot of the work out of the equation.

All you have to do is head to the top of the page and plug in some basic details, including the amount you wish to borrow, how long you want to repay over and why you need the money.

The mortgage calculator will then match your enquiry with our pick of the top deals from across the industry, making it much quicker and simpler for you to make a comparison.

Independent Mortgage Advice

Remortgaging is particularly popular at the moment as interest rates are low.

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Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.

However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.

If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).

If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on Gatehouse Bank mortgages as well as other lenders.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.