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Following last week’s reduction of its Home Purchase Plan rental rates, Al Rayan Bank, the UK’s oldest and largest Islamic bank, has significantly reduced the rental rates of its Buy To Let Purchase Plan (BTLPP) range. The Bank has also introduced a new five-year fixed 80% FTV BTLPP.
The Sharia compliant BTLPP products are available to UK residents who wish to purchase property in their own name, or in the name of a limited company. UK expats working overseas can purchase property in their own name.
The new rental rates are available on a fixed and discounted basis from 3.19% to 3.89% for UK residents and 3.64% to 4.64% for UK expats working overseas. BTLPP products are also available for UK resident landlords looking to purchase their investment properties in a more tax efficient way, with rental rates ranging from 3.49% to 4.19%. All BTLPPs are available on a ‘rent only’’ basis and there are no early settlement fees incurred.
Maisam Fazal, Chief Commercial Officer at Al Rayan Bank, said: "As the largest provider of Sharia compliant home and property finance in the UK, Al Rayan Bank is committed to making our products as widely available as possible. Reducing our rental rates by such a significant amount and introducing new five-year fixed rental rates means that more people will be able to apply for our buy to let products."
Al Rayan Bank's BTLPPs are joint ownership agreements. Landlords acquire the property in partnership with the Bank, and their monthly payment contributions increase their share of the property. They also pay a rental amount to the Bank for the proportion of the property they do not own yet. Upon completion of the payment terms, the landlord becomes the sole owner of the property.
Founded in 2004 as the first Islamic retail bank in Europe, Al Rayan Bank currently serves more than 90,000 customers and has a current asset book in excess of £2 billion. The Bank is the only UK Islamic bank to receive a public credit rating, and a recent independent study into the economic impact of Al Rayan Bank found that it delivered £389million to the UK economy in 2018.
As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.