Gatehouse Bank has brought new 90% finance-to-value (FTV) and 95% FTV home purchase plans to the market.

The 90% FTV products are available for first-time buyers, homemovers and borrowers looking to refinance, while the latter is limited to FTBs only.

The Shariah-compliant lender does not charge interest, but owns the property on a home purchase plan only with the owner and the borrower pays rent on this share.

All of the new loans have a minimum finance amount of £100,000 and a maximum amount of £500,000.

The 90% FTV product on a two-year fix has an initial rental rate of 4.25% and, for a five-year fix, 4.50%. Each charges a £999 product fee.

For the 95% FTV products, the two-year fix is set at 4.50% and the five-year fix at 4.75%. These too charge a £999 product fee apiece.

Gatehouse Bank product manager John Mace says: “This launch follows a significant number of enquiries from customers who are looking to move into their first home or refinance.

“The property market has been incredibly busy this year, and in some regions house prices have risen steeply, making it ever-more challenging for first-time buyers to save a large enough deposit.

“We believe the launch of our ethical home finance products with higher finance to value will prove attractive and enable many first-time buyers to take their first steps onto the property ladder.”