Moving home can be a daunting task. We're here to help make it as smooth as possible.
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN
The minimum finance amount on our Home Purchase Plans and Buy To Let Purchase Plans is currently £200,000. The minimum property value is currently £307,692.
- Revert rental rate: Al Rayan Bank Variable Rental Rate which for Home Purchase Plan (HPP) = 5.24% (Bank of England Base Rate + 3.99% margin).Please note that if the Bank of England Base Rate (BBR) is ever lower than 0% it will be deemed to be 0% for the purposes of calculating the Al Rayan Bank Revert Rental Rate.
- Finance amount: £200,000 to £1,500,000 (higher amounts may be considered)
- Minimum property value: £307,692
- Finance term: 7 to 35 years
- Maximum number of applicants: Up to four applicants (all applicants must be owner occupier)
- Valuation and legal fees: Valuation and legal fees is 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's legal costs. However, you are not obliged to use one of our panel solicitors. For more information, please refer to the HPP Tariff List.
- Minimum age of applicant(s): 21 years
- Additional acquisition payments: No additional acquisition payments are permitted during the fixed rental period. Following the expiry of the fixed rental rate, additional acquisition payments can be made in the month of each rent review.
- 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 HPP products by more than 2% over the margin that applied at the outset. Al Rayan Bank cannot change its margin whilst a fixed rent rate applies. 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 applicable administration fee, please refer to the HPP Tariff List.
- Legal title: For HPPs in England & Wales, Al Rayan Bank holds the legal title until all acquisition payments have been made.
How to apply
There are a number of ways to apply or to request more information.
For your own benefit and protection, you should carefully read some important information leaflets we have prepared, before you complete the application.
Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.
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HPP - How much are my payments?
Buying or refinancing a property is a major decision. To help you make the right choice, we have produced a calculator to give an indication of the payments that you would need to make.
Please use the calculator to consider your options, or go to our secure online system which allows you to proceed to an online application form.
The clear and expert communication made the whole HPP application process easier and stress-free.
This is our 3rd HPP that we've taken out with Al Rayan and we will not go with another bank again!
Mr Adil Ali
I have recently dealt with Al Rayan Bank. It has been a pleasure working with them and the experience was quick, easy and effective.
More information on home finance
View our other products and learn more about Islamic home finance
Buy to let
Our Buy to Let Purchase Plans let you invest in property in an ethical, Sharia compliant way.
Expat home finance
If you're a UK expat working in a nother country, our range of home finance products could help you invest back home.
Frequently asked questions
We answer some commonly asked questions about HPPs and Islamic home finance.