Guide for landlords
At the last count there were over 2.5 million landlords in the UK. If you’re considering joining that number, no doubt you will have done your research into topics such as yields, deposits and insurance – but what about Sharia compliant finance options?
Al Rayan Bank offers the UK's widest range of Sharia compliant home finance products, including property finance for landlords. Al Rayan Bank continues to innovative and recently launched a new more tax efficient Limited Company Buy To Let Purchase Plan to its range.
The principle difference between Sharia compliant property finance and a conventional mortgage is that no interest is involved at any stage in the home finance process.
Here’s how it works:
Al Rayan Bank buys the property together with you, as partners. You then make a payment to the bank every month, made up of two parts:
- Rental payment – this is the amount that you would pay as rent on the bank’s share of the property.
- Acquisition payment – this payment increases your share in the property. As your share in the property increases, your rental payment would decrease.
View out Buy To Let Purchase Plan range