Additional Acquisition Payments for Home Purchase Plans
Additional acquisition payments increase your share in the property and can either be used to reduce the term of your finance or reduce your monthly payments. Below are the most frequently asked questions about making additional acquisition payments.
Who can make an additional acquisition payment?
If you are currently on the Al Rayan Bank Variable Rental Rate, a discounted variable rental rate or you are in the final month of your fixed rental rate agreement, you can make an additional acquisition payment.
How much of an additional acquisition payment can I make?
The minimum acquisition payment you can make is £4,000. There is no maximum amount.
Are there any fees?
There is a £25.00 administration fee for every additional acquisition payment you make. We will deduct the £25.00 administration fee from the payment that you send us, for example, if you want to make an additional acquisition payment of £5,000 you will need to send £5,025. For further details on the fees and charges associated with your finance product please refer to the HPP Tariff list.
When can I make an additional acquisition payment?
If you are currently on the Al Rayan Bank Variable Rental Rate or Discounted Variable Rental Rate you can make four additional payments a year, one in March, June, September and December. For the Bank to apply the payment it needs to be made by the 20th day of each of those months.
If you are on a fixed rental rate product you can make an additional acquisition payment in the final month of your fixed rental rate agreement, again payment needs to be made by the 20th day of the final month of your fixed rental rate.
When will my payment be applied to reduce my finance balance?
Your payment will be applied at the same time we collect your next monthly payment. For example, if you make an additional acquisition payment in June, this payment will be applied at the same time as your July monthly payment is collected.
When will my monthly payments reduce?
Your monthly payment will reduce the month after the additional acquisition payment has been applied, therefore, if the additional acquisition payment is made in June, it will be applied in July and your monthly payments will reduce in August when July's payment is collected.
Can I reduce the term of my Finance?
You can reduce the term of your finance product by opting to keep your monthly payments the same. You will receive a confirmation of your new term by post after we have applied your additional acquisition payment.
How do I notify you of the option I wish to choose?
You can telephone and let our Customer Service agents know whether you want to reduce either your monthly payment or your finance term. Alternatively, you can e-mail the request to email@example.com. Please ensure you quote your name and six-digit Customer ID number which can be found on your statement.
Where do I send my acquisition payment?
Please send you additional acquisition payment including the £25.00 administration fee via Bank Transfer to Al Rayan Bank.
Account Name: Al Rayan Bank PLC
Account Number: 79977101
Sort Code: 30-00-83
Reference: Please quote your six-digit Customer ID number and name as the reference.
If your additional acquisition payment and administration fee are coming from an Al Rayan Bank account, we can transfer these funds directly ourselves. Please inform the Bank if you intend to make the acquisition this way is by e-mailing firstname.lastname@example.org.
What documents do you need to provide and why?
As a regulatory requirement, you must provide proof of the source of funds for the additional acquisition payment. The information we will need will depend on the source and amount of the funds. The information needs to be e-mailed to us at email@example.com quoting your name and six-digit Customer ID number.
Below is a list of some of the documentary evidence required, based on the source of these funds.
|Source and/or payment ammount||Documentation required|
|Additional aquisition payments over 50k||6 months’ bank statements - the statements need to show sufficient funds to make the payment.|
|Additional aquisition payments under 50k||3 months’ bank statements - the statements need to show sufficient funds to make the payment.|
|Gifted funds||Gift letter from the person making the gift stating that these funds are being provided as a gift. We also require the bank statements from the person making the gift. 6 months of statements ifor gifts over £50k, 3 months if below £50k. These statements need to show sufficient funds to make the gifted payment (If you are not able to provide this then we require a letter which explains how you have accrued these funds). If we cannot establish these sources of funds, we may have to return the payment to you. We recommend you seek legal advice when using this source for an acquisition payment.|
|Shares/dividends||Evidence of sales or receipt of dividends.|
|Reducing your liability for unauthorised payments||Evidence of sales or receipt of dividends.|
|Al Rayan Bank accounts||No evidence is normally needed as we can check the funds in the bank account. If funds have recently been placed in this account, we may ask for the source of these funds.|