Home Purchase Plan
Pay rent not interest with our Sharia compliant mortgage alternatives.
Up to 90% finance to value
- Rental rate fixed until 31 December 2022
- From 1 January 2023 reverts to Al Rayan Bank Variable Rental Rate which for HPP = 4.74% (Bank of England Base Rate + 3.99% margin)
- Administration fee of £999
Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.
|Finance amount:||Up to £400,000|
|Minimum property value:||£80,000|
|Term:||7 - 35 years|
|Maximum number of applicants:||Up to two applicants (all applicants must be owner occupier)|
Administration fee - £999
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 HPP Tariff List
|Minimum age of applicants:||18 years|
- The fixed rental rate will end on 31 December 2022
- The new rental rate will be effective from 1 January 2023
- 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
- 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
- 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:
- Please ring our HPP Specialist Sales team on 0800 408 0435 (Mon - Fri 9am - 7pm, Sat 9am - 1pm)
- Check your eligibility by using our Agreement in Principle
- Or to request a call back please click here
- You can visit one of our branches or offices that are located throughout the UK
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.
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