The bank offers Shariah-compliant ethical savings products for UK customers, as well as 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.

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 for UK Residents, UK Expats and International Residents.

The agreement also includes a sale of circa £100m 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 £1.2bn.

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

Commenting on the deal Gatehouse Bank chief executive Charles Haresnape said: “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.”