Gatehouse Bank has today announced the sale of the economic interest of an established Home Purchase Plan (HPP) portfolio to Waterfall Asset Management, LLC. The portfolio comprises balances totalling £405m and is the largest Islamic home finance sale to take place in the UK to date. Gatehouse will continue to manage the portfolio and customers’ terms and conditions remain unchanged.
Gatehouse Bank entered the HPP market in December 2018. Since then, it has continued to diversify and expand its range of residential property finance products, including the launch of a wider selection of fixed-term products, refinancing, higher finance-to-value (FTV) options and a move into green home finance for customers seeking a more energy efficient property.
The Bank has played a key role in expanding and growing the UK Islamic home finance market, expanding the options for consumers to choose from and, alongside other providers, increasing competition. It continues to offer residential property finance for UK residents, UK expats and international homebuyers buying a home or investment property in England or Wales. It played a leading role in achieving tax changes in the Finance Act 2025 to equalise treatment with conventional finance
Today’s sale forms part of Gatehouse Bank’s strategic plan for long-term growth and is the first of several planned back book sales or securitisations over the coming years, which will allow for the recycling of capital held by the Bank. Standard Chartered advised on the portfolio sale.
Charles Haresnape, Chief Executive Officer at Gatehouse Bank, said: “Today’s announcement is an important milestone in Gatehouse Bank’s history. It is a testament to the strength of our residential property finance proposition, its continued popularity with customers in the UK and the opportunities it can present for investors globally.
“We plan to reinvest the capital raised from today’s historic agreement with Waterfall Asset Management into enhancing our offering for customers and pursuing growth opportunities for the Bank, as we look towards the future of the organisation.”
James Cuby, Head of Europe at Waterfall Asset Management, added: “Waterfall is pleased to partner with Gatehouse Bank on this transaction, which underscores our commitment to deliver bespoke regulatory capital and balance sheet solutions that help optimise capital efficiency and support continued growth in mortgage origination.”
Michael Rose, Executive Director, Debt Capital Markets at Standard Chartered said: "This transaction demonstrates the increasing depth and maturity of the market for Shariah-compliant assets in the UK. The strong investor interest highlights the growing appeal of high-quality Islamic finance portfolios as an institutional asset class. We are delighted to have supported Gatehouse Bank on a transaction that broadens access to this market and creates an important precedent for future capital flows into the sector."
