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Gatehouse Bank lowers FTV to 65%

Gatehouse Bank has lowered its finance-to-value (FTV) limit to 65% on buy-to-let and home purchase plans to help cope with existing market conditions.

Gatehouse has also suspended loans against houses in multiple occupation, multi-unit blocks, new-builds and apartment buildings over six storeys.

The lender says cases over 65% FTV, which is the equivalent of loan-to-value on conventional mortgages, will be put on hold until it is once again possible to carry out physical property inspections.


Gatehouse will be carrying out desktop valuations for cases under this limit in order to continue lending to home buyers and landlords.

Previously buy-to-lets were capped at 80% for UK residents, expats and international residents.

The initial rental rates for all products at 65% FTV remain unchanged.

Charles Haresnape, chief executive, said: “These are clearly challenging times, as it is not possible for standard valuations to be carried out, due to social-distancing. 

“We have had to make changes to our products in order to continue to support homebuyers and landlords. 

“We hope these changes will only need to be in place for a short period of time and plan to broaden our proposition, as soon as it is possible to access standard valuations.

“We will also be contacting customers who have recently applied for finance above 65% FTV and have not had a valuation carried out, to make them aware of our decision and advise them that we would be happy to proceed as soon as standard valuation is possible.

“We are working hard to provide our existing customers with support during these uncertain times. 

“In line with other providers, we are helping customers that are facing financial difficulties, assessing their needs to find a suitable payment strategy and providing a payment holiday of up to three months if required.”

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