Product Switch After 1 Oct 2025

Product Switched On Or After 1 October 2025 (Early Settlement Premium Applies)

If the start date of your existing rental rate was on or after 1 October 2025, an Early Settlement Premium will apply when you product switch.

The Early Settlement Premium is a charge that will apply if you choose to settle your finance early or make additional payments above your annual allowance. It’s designed to cover the Bank’s costs when a customer exits their agreement ahead of schedule. Importantly, AlRayan Bank does not profit from this charge.

When an Early Settlement Premium will apply

ESP applies to all product switch rental rates for:

• Home Purchase Plans (HPP)
• Buy to Let Purchase Plans (BTLPP)

It does not apply to:

• The AlRayan Bank Standard Variable Rental Rate
• Any historical rental rates

How an Early Settlement Premium works

A 2% premium is applied in the following situations:

• You settle your finance in full before the end of your fixed or discounted rental rate period.
• You make additional acquisition payments (AAPs) that exceed your annual allowance.

In addition to the Early Settlement Premium, the following charges may also apply:

• A £240 settlement fee (£270 for HPP Scotland), which includes the legal transfer of title.
• Any fees for settlement statements
• Any outstanding charges on your account at the time of settlement

Additional Acquisition Payments (AAPs)

If your rental rate includes an Early Settlement Premium, you can make additional acquisition payments of up to 10% of your outstanding balance as at 1 Feb each year, without incurring an ESP.

Key Details:

• Allowance period: 1 February to 31 January
• Allowance is based on your balance as of 1 February
• Minimum AAP amount: £2,000
• Administration fee: £25 per payment
• Payment deadline: 20th of the rent review month

Customers on existing fixed rental rates without an Early Settlement Premium are not eligible to make AAPs.