Gatehouse Bank has lifted the maximum amount on its home purchase plans (HPP) to £5m, bringing them in line with its buy-to-let range.

The UK-based Shariah-compliant lender adds that the maximum loan available at 80% finance-to-value (FTV) across both the Bank’s HPP and BTL ranges has doubled from £1m to £2m. Also, the maximum finance available at 75% FTV for HPP has increased from £2.5m to £3m.

The bank says a new BTL FTV tier of 75% FTV has been introduced for UK residents, UK expats and international buyers with maximum finance to match its HPP counterparts to £3m.

Existing products for houses in multiple occupation and multi-unit freehold blocks at 75% cent FTV have simultaneously been increased to £3m, from £1m previously.

It adds that for loans above £3m, both HPP and BTL products will now have a maximum of 70% FTV.

The lender says: “The changes mean Gatehouse’s HPP and BTL products carry the same maximum finance amount at each FTV tier, without any change to rental rates. This will simplify the information and application process for brokers and customers.”

It adds that UK homebuyers with a smaller deposit have access to funding between £100,000 and £500,000 by using one of the bank’s 90% or 95% FTV products, the latter loan is only available to first-time buyers.

Gatehouse Bank product manager John Mace says: “Increasing the maximum finance amounts available on our HPP and BTL products further improves our home finance range.

“The changes align our HPP and BTL products making it easier for brokers and customers alike.

“Islamic home finance continues to grow in the UK and these changes will enhance our competitiveness at a time when life is slowly returning to normal.”

Gatehouse Bank’s BTL and HPP products do not carry early payment charges, in line with its Shariah-compliant lending policies.