In a move that is sure to capture the attention of Middle East investors seeking Shariah-compliant property financing, Gatehouse Bank, a specialist in Shariah-compliant home financing, has recently announced a reduction in rental rates across its Buy-to-Let (BTL) Purchase Plans. The bank, known for offering financing options that align with Islamic finance principles, has reduced its rental rates by up to 0.20% for both two-year and five-year fixed-term plans.
The reduction in rental rates is a significant shift in the UK property investment landscape, particularly for Middle Eastern investors who are keen to ensure their investments align with Shariah-compliant practices. Instead of charging interest (which is prohibited in Islamic finance), Gatehouse Bank charges rental rates based on the share of the property that the investor owns, ensuring that the transaction remains compliant with Islamic law. This adjustment makes financing even more attractive for landlords looking to enter or expand within the UK’s Buy-to-Let market.
The reduction affects all standard and green products, with adjustments made to both new and existing customers. Whether investors are looking to finance Houses in Multiple Occupation (HMO) or Multi-Unit Freehold Blocks (MUFB), this reduction in rates makes it easier for both individual and UK-registered Special Purpose Vehicle (SPV) companies to secure the right financing.
For investors from the Middle East, the UK has long been seen as a stable market for property investment. This new reduction in rental rates presents an ideal opportunity to further diversify portfolios and gain access to high-yield properties in the UK Buy-to-Let sector.
By lowering financing costs, Gatehouse Bank is not only making it easier for investors to access the property market, but they’re also providing a more competitive offering compared to other banks in the UK. With Shariah-compliant options, investors can now secure attractive financing for rental properties while ensuring that all financial dealings remain in line with their personal and ethical beliefs.
The UK property market remains a solid choice for Middle Eastern investors due to its strong rental demand, capital appreciation, and legal protections for property owners. Gatehouse Bank’s adjustments make this market even more accessible, providing an additional incentive for investors to consider the UK Buy-to-Let space as part of their next investment strategy.
According to Gemma Donnelly, Head of Customer Propositions at Gatehouse Bank, the bank remains fully committed to supporting homebuyers and landlords in achieving their property ownership goals within the UK Buy-to-Let market. The bank is confident that these changes will not only help new investors enter the market but will also provide existing investors with better rates and a more competitive offering. This commitment underscores the bank’s desire to stay at the forefront of the Shariah-compliant finance market, ensuring that Middle East investors can confidently navigate their property investments.
The reduction in rental rates, combined with Shariah-compliant financing for HMO and MUFB properties, makes it the perfect time for Middle Eastern investors to capitalise on the UK's thriving property market. Whether you're a seasoned investor or just starting, Gatehouse Bank’s competitive financing options are a step in the right direction for those looking to maximise returns while ensuring compliance with Islamic finance principles.
The UK property market continues to stand out as a safe, profitable investment with strong long-term growth potential. With rising rents, high tenant demand, and major infrastructure projects like HS2 making the UK even more attractive to investors, now is a prime time to explore Shariah-compliant investment opportunities. Whether you are considering residential properties or larger commercial investments like HMOs or MUFBs, the UK offers stability and security that is hard to match elsewhere.