Gatehouse Bank lowers minimum loan amount

Gatehouse Bank has reduced the minimum amount of finance it will offer borrowers of buy-to-let and buy-a-house plans from £100,000 to £75,000.

This will apply to all customers, including UK residents, expats and international residents. It also includes purchases of multi-unit housing (HMO) and freehold multi-unit buildings (MUFB).

Gatehouse has also updated the buy-to-let criteria, which means landlords will no longer need a minimum income of £18,000 if the applicant already owns a buy-to-let property and the income lease exceeds the monthly finance payment to finance service charge ratio (FSCR).

If an applicant is both a first-time buyer and a first-time owner, they will need to demonstrate a minimum income of £15,000.

Proof of this level of income will also be required from all applicants if rental income does not meet the FSCR threshold and personal income is used to supplement monthly payments.

As Gatehouse is a Shariah-compliant lender, it charges rental rates for its loans rather than interest.

The changes come weeks after the bank increased the maximum funding amount for its home loans to £5m to align the range with its buy-to-let products.

John Mace, Head of Product at Gatehouse Bank, said: “The UK property market remains incredibly buoyant despite recent Bank of England base rate hikes and these improvements ensure our offer remains highly competitive and more accessible to buyers. Of house.”

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