Gatehouse Bank reduces minimum home finance amount to £75,000

This will apply to all borrowers including UK residents, UK expats and international residents. It also applies to purchases of HMOs and MUFBs.

The Bank has also improved its buy-to-let criteria by removing the requirement for a minimum income of £18,000. Landlords who already own a buy-to-let property will no longer require a minimum income for most products if the property’s rental income exceeds the monthly finance payment at the applicable Finance Service Coverage Ratio (FSCR).

If the applicant is a first-time buyer and/or first-time landlord, at least one applicant will need to demonstrate annual income of at least £15,000.

Evidence of this level of income will also be required of all applicants where the rental income doesn’t meet the applicable FSCR threshold (either 125% or 145%), and personal income is used to supplement monthly payments - known as ‘income top up’ or ’top slicing’ which is only available to UK residents and UK expats.

The changes come just a few weeks after the Bank increased the maximum finance amount on its HPPs to £5million, bringing them in line with its buy-to-let products. 

John Mace, product manager at Gatehouse Bank, said: “The UK property market remains incredibly buoyant despite recent rises in the Bank of England Base Rate and these improvements ensure our offering continues to be very competitive and more accessible to homebuyers.

“This comes just a couple of weeks after we increased the maximum finance level of our HPP products to £5m and increased the amount we will finance at 80% FTV from £1m to £2m for both homebuyers and landlords.”