Home Purchase Plan

If you're looking to move a conventional mortgage to an Islamic alternative, or are looking for a better deal on existing Islamic home finance with another bank, we're here to help.

70%Finance to value
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN

Move your home finance to Al Rayan Bank and we'll waive your admin fee, pay your valuation fee* and offer you £300 cash back**

Up to 70% finance to value

Fixed 3.19%

  • Rental rate fixed until 31 December 2019
  • From 1 January 2020 reverts to Al Rayan Bank Variable Rental Rate which for HPP = 4.24% (Bank of England Base Rate + 3.99% margin)
  • Administration fee of £0

Discounted Variable 3.39%

  • Rental rate discounted until 31 December 2019
  • Discounted from Al Rayan Bank Variable Rental Rate which for HPP = 4.24% (Bank of England Base Rate + 3.99% margin)
  • Administration fee of £0

Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.

* Valuation fee paid up to a maximum of £600
** Cashback paid upon receipt of first monthly HPP payment

Key features

General information

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

£0

Valuation fees:

Al Rayan Bank will pay the valuation fee up to a maximum value of £600. This payment will only apply to the first completed valuation in relation to the HPP application

Legal fees: 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 £500 (including VAT) contribution towards the Al Rayan Bank legal costs on refinances. However, you are not obliged to use one of our panel solicitors. For more information, please refer to the HPP Tariff List
Cashback: If you choose to proceed with one of our panel solicitors, Al Rayan Bank will pay a 'cashback' of £300 to the customer following the customer's first monthly HPP payment
Minimum age of applicants: 21 years
Expat home finance Home Purchase Plans are available to UK nationals living and working abroad

Rent reviews

Fixed product

  • The fixed rental rate will end on 31 December 2019
  • The new rental rate will be effective from 1 January 2020
  • 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 variable rental rate will end on 31 December 2019
  • The new rental rate will be effective from 1 January 2020
  • 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. However, settlement prior to the expiry of the fees assisted fixed or discounted rental rate period, will result in the customer having to pay the full value of the fees assistance they have received. This includes the waived administration fee, the Bank's contribution towards the valuation fee, and the value of the cashback paid by the Bank.

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.

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