Existing HPP FAQs

Q: How would a change in the Bank of England Base Rate affect my monthly payments?

A: If you are on a Fixed Rental Rate, your monthly payments would not be affected until after the Fixed Rental Rate has expired.

If you are on a Discounted Variable Rental Rate, or the Al Rayan Bank Variable Rental Rate, your monthly payments could be affected and would be reviewed at the next rent review.

Q: What happens if the Bank of England changes its Base Rate before the effective date of my new Rental Rate?

A: If the Bank of England changes its Base Rate before the effective date of your new Rental Rate, Al Rayan Bank will immediately make the change to the Al Rayan Bank Variable Rental Rate. If you have selected a discounted variable rental rate, your rental rate will change from the rental rate initially quoted to you. You will be notified of the new rental rate and payments when we send you your Offer Pack and/or Welcome Letter.

If you have selected a fixed rental rate, it will not change.

Q: What is a rent review?

A: A rent review is when we review your monthly payments to see if any changes are required. Rent reviews take place every quarter in March, June, September and December. Note: Rent reviews are only conducted for Home Finance products on either a Discounted Variable Rental Rate or the Al Rayan Bank Variable Rental Rate.

Q: Can I settle my Home Finance product early?

A: Yes. You can sell your property and settle your Home Finance product early (during the fixed or discounted rental rate period), subject to our standard settlement charges. You can find out more information here.

Q: Can I switch during the Fixed or Discounted rental rate period?

A: No. You can’t switch your product whilst either a Fixed or Discounted Rental Rate applies. You can switch after the Fixed or Discounted rental rate period expires.

If you are on an Al Rayan Bank Variable Rental Rate, you can switch to a Fixed or Discounted Rental Rate at any time.

Q: What happens when my Fixed Rental Rate or Discounted Variable Rental Rate ends?

A: We will contact you before your Fixed Rental Rate or Discounted Variable Rental Rate is due to expire with details of what new rental rate options are available to you. We will tell you what your new monthly payments will be together with instructions on what you need to do to switch to the new rental rate you choose. 

You can find out more here

Q: Can I make additional acquisition payments?

A: You can find out more about additional acquisition payments and how to make them here.

Q: When will I receive my Annual Statements?

A: The Annual Statement covers the period between 1 October and 30 September and the Bank aims to dispatch these statements by the middle of December each year at the latest.

Is the Early Settlement Premium (ESP) Sharia compliant?

Yes, it is. The Early Settlement Premium has been carefully reviewed and approved by our Sharia Supervisory Committee. It’s designed to cover the Bank’s costs when a customer exits their agreement early - we do not make a profit from it.

Why is there a £25 administration fee for additional acquisition payments?

This fee helps cover the cost of processing your payment. As a Sharia-compliant bank, we’re allowed to recover reasonable administrative costs - but we don’t profit from this fee. If we ever did, we’d be required to donate the excess to charity.

Can I use my 10% allowance when settling my finance in full?

No, the allowance doesn’t apply when you settle your finance in full. However, you can still use any remaining allowance beforehand by making an additional acquisition payment.

Do I have to wait until 1 February to make an additional acquisition payment (AAP)?

You can make AAPs each quarter in March, June, September, and December.

Can I avoid the Early Settlement Premium by switching to the Standard Variable Rental Rate?

Yes. If you choose not to switch to a new fixed or discounted rate, you’ll automatically move to our Standard Variable Rental Rate - which doesn’t include an ESP or an AAP allowance.

Does the Early Settlement Premium apply to my current rental rate?

No, it only applies to new rental rates selected through the Product Switch process and if the start date is after 1 October 2025. 

How is the Early Settlement Premium calculated if I go over my AAP allowance?

The ESP is 2% of the amount you pay above your annual allowance.
For example, if your allowance is £10,000 and you make a £12,000 payment, the ESP would apply to the £2,000 excess,  which would be £40.

How will I know what my allowance is, or if an Early Settlement Premium will apply?

We’ll keep you informed at key points:

• In your Product Switch documents
• In your annual statement
• In the pre-expiry letter we send before your current rate ends

You can also contact us at any time to check your remaining allowance. And if an ESP is due, we’ll always let you know in advance.