Existing HPP FAQs
We answer some of our existing HPP customers' frequently asked questions.
Existing HPP customer 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: What is the current Bank of England Base Rate?
A: Details of the current Bank of England Base Rate can be found at: https://www.bankofengland.co.uk
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 further information here.
If you do nothing, your rental rate will revert to the Al Rayan Bank Variable Rental Rate option, which maybe higher than the new rental rates offered to you.
Q: Can I make additional acquisition payments?
A: If you are currently on the Al Rayan Bank Variable Rental Rate, a Discounted Variable Rental rate or you are in the final month of your Fixed Rental Rate agreement, you can make an additional acquisition payment.
Additional acquisition payments increase your share in the property and can either be used to reduce the term of your finance or reduce your monthly payments.
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.
Frequently asked questions
We answer some frequently asked questions about home finance.