Gatehouse Bank and ColCap UK announce home finance partnership

01/02/2025

UK / KUWAIT , Feb 01: Gatehouse Bank plc (“Gatehouse Bank”), which is majority owned by Kuwait shareholders, has announced a new partnership with ColCap Financial UK Limited (“ColCap UK”).

The Bank, which has a head office in London, offers residential property finance in England and Wales for UK Residents, UK Expats and International homebuyers and landlords and Shariah-compliant ethical savings products for UK customers.

ColCap UK is a subsidiary of the ColCap Financial Group, a privately owned, non-bank established in Australia specialising in residential home finance. As of 31st December 2023, ColCap Financial Group’s portfolio totalled over £7.4 billion. In 2022, ColCap incorporated its UK entities and began offering residential property finance in the UK.

The partnership between Gatehouse Bank and ColCap UK involves a forward flow arrangement to originate in excess of £550 million of Shariah-compliant home finance for ColCap UK over an initial two-year term. In addition, Gatehouse Bank will continue to generate its own originations onto its balance sheet through its own home finance proposition for UK Residents, UK Expats and International Residents.

The agreement also includes a sale of circa £100 million of Gatehouse Bank’s beneficial interest in its existing home finance portfolio. As of 31st December 2023, the Bank’s home finance portfolio totalled over £1.2 billion.

There will be no impact on the Bank’s customers, who will continue to be customers of and serviced by Gatehouse Bank.

Fahed Boodai, Chairman of Gatehouse Bank, commented: “We are delighted to be embarking on this partnership with ColCap UK, which highlights the Bank’s credibility as a leading Islamic finance provider in the UK.

“This 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 Shariah-compliant products.

“Ultimately, Gatehouse Bank’s goal remains to help more people seeking Shariah-compliant finance to achieve their aspirations.”

Andrew Chepul, ColCap Financial Group CEO stated: “Our partnership with Gatehouse Bank further supports our UK team’s growth in this important market.

“Gatehouse is a trusted leader in Shariah-compliant financing and together we’re well-positioned to meet the increasing demand for responsible financial solutions in the UK and beyond.”

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 Shariah-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.”