Buy To Let Purchase Plan

Pay rent not interest when you purchase your buy to let property - rent only and rent & acquisition options available.

75%Finance to value
YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR BUY TO LET PURCHASE PLAN

Up to 75% finance to value

Fixed 3.39%

  • Rental rate fixed until 30 June 2019
  • From 1 July 2019 reverts to Al Rayan Bank Variable Rental Rate which for BTL = 5.24% (Bank of England Base Rate + 4.99% margin)
  • Product fee of 1% of finance amount (minimum £995)
  • Promotional rental rate; Al Rayan Bank reserves the right to withdraw the promotion at any time

Discounted Variable 3.49%

  • Rental rate discounted until 30 June 2019
  • Discounted from Al Rayan Bank Variable Rental Rate which for BTL = 5.24% (Bank of England Base Rate + 4.99% margin)
  • Product fee of 1% of finance amount (minimum £995)
  • Promotional rental rate; Al Rayan Bank reserves the right to withdraw the promotion at any time

Key features

General information

  General information
Finance amount: £30,000 to £1,500,000 - England and Wales (higher amounts may be considered)
Minimum property value: £80,000
Term: 7 - 32 years
Maximum portfolio: Ten properties across all providers
Five properties or £2,500,000 across all Al Rayan Bank finance products
Maximum number of applicants: Up to two applicants
Fees:

Product fee - 1.00% (min £995)

Valuation and legal fees: Paid by the applicant(s)

Al Rayan Bank has created a panel of solicitors who are experienced in the Islamic finance conveyancing process. If you choose to proceed with one of our panel solicitors, Al Rayan Bank will make a £400 (including VAT) contribution towards the Al Rayan Bank legal costs. However, you are not obliged to use one of our panel solicitors.  For more information, please refer to the Buy To Let Purchase Plan Tariff List

Minimum age of applicants: 21 years
Affordability If the rent expected from the property does not meet the rental cover calculation, we may take into account any free personal income the applicant may have to make up the shortfall

Rent reviews

  • There will be four rent reviews a year in March, June, September and December
  • New rent rate effective from 1 April, 1 July, 1 October and 1 January
  • Following the expiry of the fixed rental rate, additional acquisition payments can be made in the month prior of each rent review; minimum £4,000 with a £25 administration fee

Margin

  • The bank reserves the right to change the margin on its products however a cap applies of 2%
  • Therefore Al Rayan Bank cannot increase the margin on its BTL products by more than 2% over the margin that applied at the outset
  • You will be given at least 30 days advance notice of any changes in the pricing structure

Settlement

  • The customer has the option to sell the property at any time without any penalties (subject to an administration fee to cover any costs)

How to apply

There are a number of ways to apply for a BTLPP or to request more information:

Phone:

  • Please ring our BTLPP Specialist Sales team on 0800 408 0436* (Mon - Fri 9am - 7pm, Sat 9am - 1pm)

Online:

Branches

For your own benefit and protection, you should carefully read the important information we have prepared, before you complete the application. These documents can be found in the Forms & leaflets section.

To view PDFs you need the Adobe Acrobat Reader. This program is available free of charge from the Adobe website. Al Rayan Bank is not responsible for the content of external websites.

 

Forms & other information

The following important information should be read:

To view PDFs you need the Adobe Acrobat Reader. This program is available free of charge from the Adobe website. Al Rayan Bank is not responsible for the content of external websites.

Buy To Let Purchase Plan case study

Together with his wife, Hassan Ali is looking to purchase his first buy to let property.

He wants to buy the property in an Islamic way - without interest, which is prohibited in Islam.

 

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