Specialist mortgage and credit managing general agent (MGA), Qualis Credit Risk, has announced its first high FTV home purchase plan completions with challenger bank, Gatehouse Bank.

Gatehouse offers Shariah-compliant alternatives to mainstream mortgages – home purchase plans – which are used like a conventional mortgage to buy or refinance a home.

Earlier this year, AmTrust International (AI), the UK and international arm of New York-based AmTrust Financial Services, Inc, created a new specialist mortgage and credit MGA, Qualis Credit Risk. AI’s existing mortgage and credit business transferred to Qualis, and over the last few months the MGA has been working on its strategic growth plans through Europe.

In the UK, Qualis has been working with Gatehouse on its range of 80% and above finance-to-value (FTV), rather than loan-to-value, products. Gatehouse launched its high FTV products in Q4 2021 with indemnity insurance provided by AmTrust and arranged through the Qualis Credit Risk MGA.

Under this new insurance arrangement, Gatehouse completed its first 80%-plus FTV plans in January this year, with more anticipated to complete during the months ahead.

Head of International at Qualis, Patrick Bamford, commented: “The type of customers taking out these plans tends to be younger first-timer buyers looking to get onto the ladder for the very first time, and there’s no doubting in the current housing environment there is a real requirement and demand for these products.

“We are therefore very pleased to have seen our first completions coming via Gatehouse during January this year, with more anticipated in the future. Qualis is able to provide Gatehouse with the confidence it needs to be active in this product space, and to ensure it mitigates the risk while at the same time offering ethical products at competitive rates.”

Gatehouse product manager, John Mace, commented: “Gatehouse is the only UK Shariah-compliant bank offering home finance products over 80% FTV. Since launching our higher FTV ethical finance products in September 2021, we have experienced huge demand allowing first-time buyers to take their first steps onto the property ladder.

“As a Shariah-compliant Bank, Gatehouse does not charge interest. Instead, the bank and customer are joint owners of the property, and the customer pays rent on the share of the property that the bank owns.”

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