Sharia-compliant lender Gatehouse Bank has entered a partnership with lender ColCap Financial UK to originate home finance over two years.
The forward flow arrangement will see Gatehouse Bank originate more than £550m in Sharia-compliant home finance for ColCap UK.
The agreement also includes the sale of around £100m of Gatehouse Bank’s beneficial interest in its existing home finance portfolio.
As of 31 December 2023, this was valued at £1.2bn.
Gatehouse Bank said the partnership would have no impact on its customers, who will continue to be serviced by the lender. It will continue to generate home finance originations on its balance sheet for its UK residents, UK expats and international borrowers.
Charles Haresnape, CEO of Gatehouse Bank, 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.
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“Our partnership with ColCap UK will provide Gatehouse Bank with further means of fulfilling our growth potential, allowing the bank to continue to meet the strong appetite from both UK and overseas customers for Sharia-compliant products.”
He added: “Ultimately, Gatehouse Bank’s goal remains to help more people seeking Sharia-compliant finance to achieve their aspirations.”
Andrew Chepul, CEO of ColCap Financial Group, said: “Our partnership with Gatehouse Bank further supports our UK team’s growth in this important market.
“Gatehouse is a trusted leader in Sharia-compliant financing and together we’re well-positioned to meet the increasing demand for responsible financial solutions in the UK and beyond.”
Diversification for ColCap
Esther Morley, ColCap UK’s executive director and COO, added: “Our collaboration with Gatehouse Bank allows ColCap UK to diversify and expand into new market segments. This forward flow arrangement positions us to meet the growing demand for Sharia-compliant financing.
“Combining Gatehouse’s and ColCap’s expertise, we’re confident this collaboration will deliver significant value and reinforce ColCap UK’s leadership in ethical finance.”
