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Gatehouse increases FTV limits to 75%

Ryan Fowler

May 28, 2020

Gatehouse Bank has reintroduced 75% Finance to Value (FTV) limits on its buy-to-let and Home Purchase Plan products.

This follows the Bank’s decision to reduce its maximum FTV to 65% on 1 April, due to difficulties in gaining physical valuations during the lockdown.

Physical valuations have now recommenced, and Gatehouse will now offer finance 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.

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.

“We have seen considerable demand from these specialist markets since launching our initial Home Finance proposition in 2018.

“Customers who applied for finance between 65% and 75% FTV, who have not had a valuation carried out, will see their applications proceed in earnest.”

Finance to Value (FTV) is the Shariah-compliant equivalent of loan-to-value (LTV) for conventional mortgages.


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