Gatehouse Bank enters home finance partnership with ColCap UK 

Gatehouse Bank has announced a new partnership with ColCap Financial UK.

Gatehouse offers Shariah-compliant residential property finance in England and Wales for UK residents, UK expats and international homebuyers and landlords.

ColCap UK is a subsidiary of the ColCap Financial Group, a privately owned, non-bank established in Australia specialising in residential home finance. In 2022, ColCap incorporated its UK entities and began offering residential property finance in the UK.

The partnership between Gatehouse Bank and ColCap UK involves a forward flow arrangement to originate in excess of £550 million of Shariah-compliant home finance for ColCap UK over an initial two-year term. In addition, Gatehouse Bank will continue to generate its own originations onto its balance sheet through its own home finance proposition.

The agreement also includes a sale of circa £100 million of Gatehouse Bank’s beneficial interest in its existing home finance portfolio. As of 31st December 2023, the Bank’s home finance portfolio totalled over £1.2 billion.

There will be no impact on the Bank’s customers, who will continue to be customers of and serviced by Gatehouse Bank.

ColCap completed its acquisition of buy-to-let mortgage lender, Molo, in August this year. In 2023 ColCap purchased of an 80% shareholding in Molo, following an initial strategic partnership in 2022.

Charles Haresnape, CEO of Gatehouse Bank, commented: “We are delighted to be embarking on this partnership with ColCap UK. We have seen a considerable increase in demand for our products and services over the last five years and this agreement highlights the Bank’s credibility as a leading Islamic finance provider in the UK.

“Our partnership with ColCap UK will provide Gatehouse Bank with further means of fulfilling our growth potential, allowing the Bank to continue to meet the strong appetite from both UK and overseas customers for Shariah-compliant products.

“Ultimately, Gatehouse Bank’s goal remains to help more people seeking Shariah-compliant finance to achieve their aspirations.”

Andrew Chepul, group CEO of ColCap Financial Group, said: “Our partnership with Gatehouse Bank further supports our UK team’s growth in this important market.

“Gatehouse is a trusted leader in Shariah-compliant financing and together we’re well-positioned to meet the increasing demand for responsible financial solutions in the UK and beyond.”

Esther Morley, ColCap UK’s executive director and COO, added: “Our collaboration with Gatehouse Bank allows ColCap UK to diversify and expand into new market segments. This forward flow arrangement positions us to meet the growing demand for Shariah-compliant financing. Combining Gatehouse’s and ColCap’s expertise, we’re confident this collaboration will deliver significant value and reinforce ColCap UK’s leadership in ethical finance.”