Home Purchase Plan

Pay rent not interest with our Sharia compliant mortgage alternatives.

60%Finance to value
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN

Up to 60% finance to value

Fixed 2.44%

  • Rental rate fixed until 31 December 2018
  • From 1 January 2019 reverts to Al Rayan Bank Variable Rental Rate which for HPP = 4.24% (Bank of England Base Rate + 3.99% margin)
  • Administration fee of £399

Discounted Variable 2.64%

  • Rental rate discounted until 31 December 2018
  • Discounted from Al Rayan Bank Variable Rental Rate which for HPP  = 4.24% (Bank of England Base Rate + 3.99% margin)
  • Administration fee of £399

Key features

General information

Finance amount: £30,000 to £1,500,000 (higher amounts may be considered)
Minimum property value: £80,000
Term: 7 - 32 years
Maximum number of applicants: Up to four applicants (all applicants must be owner occupier)
Fees:

Administration fee - £399

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'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 applicants: 21 years

Rent reviews

Fixed product

  • The fixed rental rate will end on 31 December 2018
  • The new rental rate will be effective from 1 January 2019
  • Rental rate will be reviewed quarterly thereafter
  • 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 

Discounted Variable

  • The discounted rental rate will end on 31 December 2018
  • The new rental rate will be effective from 1 January 2019
  • There will be four rent reviews a year in March, June, September and December
  • New rental rate effective from 1 April, 1 July, 1 October and 1 January
  • Additional acquisition payments can be made in the month 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 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 administration fee to cover any costs)

How to apply

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

Phone

  • Please ring our HPP Specialist Sales team on 0800 408 0435 (Mon - Fri 9am - 7pm, Sat 9am - 1pm)

Online

Branches

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

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

Forms & other information

The following information leaflets should also 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.

HPP case study

Meet Ahmed and Aisha, who are looking to buy a larger house for their growing family.

Read full case study

Home Purchase Plan standard process

There will be four key parties involved in the processing of your HPP: you, your solicitors, Al Rayan Bank and Al Rayan Bank’s solicitors. The role each plays is outlined below in our high level overview of the standard process.

HPP Flow Chart Portrait V 3 (600pxl)

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