Big Boost for UK Islamic Home Finance: Gatehouse Bank Reintroduces 90% and 95% FTV Sharia Compliant Home Purchase Plans
- Stephen Martin
- 4 days ago
- 4 min read
Big news for homebuyers. Especially if you're looking for a halal, Sharia-compliant alternative to traditional mortgages.
Gatehouse Bank has reintroduced their 90% and 95% Finance-to-Value (FTV) Home Purchase Plans (HPPs) — and it’s a move that could make a huge difference to first-time buyers, home movers, and anyone searching for ethical home finance in the UK.
If saving a big deposit has been holding you back, this is the opportunity you’ve been waiting for.
Let’s break down why this matters — and how it can help you move forward with confidence.
Why This Matters: More Access, Less Deposit
Helping First-Time Buyers Step Onto the Property Ladder
Saving for a home has never been easy. And with rising rents, inflation, and the cost-of-living squeeze, building up a 15–20% deposit is even tougher for many households.
Now, with 95% FTV options back on the table, buyers only need a 5% deposit to purchase a home with Gatehouse Bank’s Home Purchase Plan.
That means:
You need less upfront cash
You can buy sooner
You keep more of your savings for moving costs or emergencies
For many, it’s the difference between waiting years… or buying now.
A Step Forward for UK Islamic Home Finance
Islamic home finance is more than a niche. It’s a growing market that’s reshaping the way we think about buying property in an ethical, faith-aligned way.
Home Purchase Plans don’t involve interest (riba), and they’re structured to align with Sharia principles, meaning no conventional interest-based lending.
But until now, many Islamic finance products required larger deposits than traditional mortgages — creating a barrier for buyers who want to stick to their values without stretching their finances.
That’s why Gatehouse’s update is such a big deal.
It levels the playing field.
What’s New: Gatehouse Bank’s Updated HPP Offering
Here’s a breakdown of what’s on offer with the new product range.
At a Glance – Product Highlights
🔹 95% FTV HPP (Home Purchase Plan)
Available for purchases only
Includes first-time buyers and home movers
Maximum finance: £600,000
Available on new build houses
🔹 90% FTV HPP
Available for purchases and refinance
Includes first-time buyers, home movers
Maximum finance: £750,000
Available on new build houses and flats
🔹 Fixed Term Options
Fixed rate for 2 years or 5 years
Structured for UK residents only
This is Sharia-compliant home finance that fits real-life buying journeys — not just theory.
Who’s Eligible?
If you're wondering whether you or your client could qualify, here’s the criteria snapshot:
✅ UK Resident
✅ First-Time Buyer or Home Mover
✅ Looking to Purchase or Refinance
✅ Buying a House (up to 95%) or Flat (up to 90%)
✅ Seeking Finance Up to £750,000
You don’t need a flawless financial history or to be buying a mansion — this is designed to support everyday buyers making a smart, ethical choice.
Why Gatehouse Bank’s Move Is a Big Deal
The Challenge of Saving a Large Deposit
Let’s be honest: most people don’t have tens of thousands of pounds sitting in the bank.
Especially younger buyers. Especially those renting. Especially during a cost-of-living crisis.
Reintroducing 95% FTV means you can buy a £300,000 home with just £15,000 in deposit — rather than £45,000+ if a lender required 85% FTV (subject to income and affordability checks)
That’s a massive difference.
And it shows that Islamic finance is finally adapting to real-world needs.
The Growing Demand for Halal Alternatives
According to a 2023 report from The Islamic Finance Council UK, demand for halal home financing is rising steadily — with thousands of Muslims actively seeking ethical routes to property ownership each year.
There are more than 3.9 million Muslims in the UK, and a significant percentage want to buy property without compromising their faith.
This move from Gatehouse Bank is a direct response to that need — and a strong signal to the rest of the market.
How This Compares to Traditional Mortgage Products
A lot of buyers still don’t fully understand how a Home Purchase Plan differs from a mortgage.
Here’s a quick comparison:
Feature | Traditional Mortgage | Home Purchase Plan (HPP) |
Based on Interest | ✅ Yes | ❌ No |
Sharia-Compliant | ❌ No | ✅ Yes |
Buyer & Bank Share Ownership | ❌ No | ✅ Yes |
Monthly Payments | Interest + Capital | Rent + Purchase Payments |
Early Settlement Options | Limited | More Flexible (in some HPPs) |
With HPPs, the bank buys the property with you. You then gradually buy back their share, while paying them rent on the part they still own. No interest involved — and full ownership passes to you by the end of the plan.
Looking Ahead: What This Means for You
Even if you’re not quite ready to buy, now is the time to start planning.
Why?
Because:
Rates fluctuate — and timing matters
Deposit options change — and this 95% FTV might not stay around forever
Eligibility can take time — especially if you're self-employed or have a complex financial background
Working with a broker (like us) helps you get clarity early and puts you in the strongest position to act when you’re ready.
Want to Know More About Halal Home Finance?
At The Introducing Broker Finance Hub, we specialise in Islamic home finance solutions, including Sharia-compliant products like the ones from Gatehouse Bank.
We’re independent. We’re whole-of-market. And we’re here to connect you with finance that fits your values and your goals.
Whether you’re:
A first-time buyer
Looking to move or refinance
Comparing Islamic vs conventional finance
Needing advice on HPP permissions (for brokers)
Let’s talk.
👉 Get in touch with an Islamic finance specialist on 020 3962 5000 or emailing info@tibfinancehub.com
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