blog mortgage118

Tag: Mortgage News

  • Gatehouse Bank Joins The Right Mortgage Panel

    Gatehouse Bank Joins The Right Mortgage Panel

    The Right Mortgage & Protection Network (TRM) has announced an exciting addition to its panel with Gatehouse Bank, effective from 8 May 2026. This partnership will enable TRM advisers to offer Gatehouse Bank’s Shariah-compliant home finance products, which include both residential Home Purchase Plans (HPP) and buy-to-let options.

    Shariah-Compliant Financing Options

    Gatehouse Bank’s HPPs operate on a rental payment model, distinguishing them from traditional interest-based lending. This structure is particularly beneficial for clients seeking ethical financing solutions. The bank caters to a diverse clientele, including UK residents, expats, and international buyers, providing tailored finance solutions across both residential and buy-to-let markets.

    Enhanced Support for Advisers

    Victoria Clark, head of lending at TRM, expressed enthusiasm about the new partnership, highlighting the importance of expanding the range of specialist finance options available to advisers. As client needs evolve, Gatehouse Bank’s unique proposition of ethical finance and flexibility will enhance the support TRM members can offer, particularly for those looking to place Shariah-compliant business.

    Practical Impact on the Market

    With the current UK base rate at 3.75% as of April 2026, the addition of Gatehouse Bank’s products could provide a competitive edge for advisers working with clients who prefer Shariah-compliant options. For instance, a first-time buyer looking for a home in London might find Gatehouse’s HPPs a viable alternative, allowing them to avoid conventional interest payments while still entering the property market.

    This collaboration not only broadens the options available to advisers but also meets the growing demand for ethical financial products in the UK mortgage landscape.

    FAQs

    • What types of products does Gatehouse Bank offer? Gatehouse Bank offers Shariah-compliant home finance products, including residential Home Purchase Plans and buy-to-let options.
    • How does a Home Purchase Plan work? A Home Purchase Plan operates on a rental payment model, allowing clients to finance their homes without traditional interest-based lending.

  • Buy-to-Let and Second Homes Boost Stamp Duty Revenue

    Buy-to-Let and Second Homes Boost Stamp Duty Revenue

    Rising Stamp Duty Earnings from Additional Properties

    Recent analysis by Paragon Bank reveals a significant shift in stamp duty revenue sources across England. As of May 2026, buy-to-let and second-home transactions now make up the majority of stamp duty receipts in over half of English local authorities. This trend has emerged since the introduction of the 3% stamp duty surcharge in April 2016, which was later increased to 5% during the 2024 autumn Budget.

    Impact on Local Authorities

    The data indicates that income from higher-rate additional dwelling (HRAD) stamp duty transactions accounted for at least half of total stamp duty receipts in 164 English local authorities, marking a dramatic increase from just 62 authorities in the 2016/17 period. The share of councils benefiting from this revenue stream has risen from 22% to 56%. Notably, many of these councils are located in urban areas of the Midlands and North, diverging from the traditional holiday or second-home hotspots.

    Regional Insights

    The analysis highlights that the higher-rate tax is now the primary source of stamp duty income in 93% of local authorities in Yorkshire and 92% in the North East. For instance, in Kingston upon Hull, HRAD transactions accounted for a staggering 97% of total stamp duty receipts, while Sandwell in the West Midlands reported 92%. Major cities such as Manchester, Salford, and Wolverhampton now derive three-quarters or more of their stamp duty income from additional-property purchases, underlining a shifting focus towards buy-to-let investments in these regions.

    Long-term Effects of the Surcharge

    Louisa Sedgwick, managing director of mortgages at Paragon Bank, commented on the unintended consequences of the stamp duty surcharge: “The surcharge was intended to temper buy-to-let and second-home demand, but it has instead solidified additional-property purchases as a vital source of stamp duty revenue. Over time, these transactions have grown to represent a much larger share of stamp duty revenues than initially anticipated.” The policy has particularly impacted northern regions, where property prices are generally lower, making buy-to-let investments more attractive.

    As the UK base rate stands at 3.75% (as of April 2026), potential investors should consider how these changes in stamp duty may affect their mortgage decisions. For those looking to navigate the current landscape, checking current mortgage rates can provide valuable insights.