We're making it easier for customers to become landlords
Al Rayan Bank is making the possibility of purchasing a buy-to-let property more widely available with the latest extension to the Buy-To-Let Purchase Plan range.
Where previously, customers would need to have a 25% deposit, our new 80% finance-to-value plana mean that customers with a min of a 20% deposit can take out Sharia-compliant property finance.
How does it work?
Unlike a conventional buy to let mortgage, our range of Buy-To-Let Purchase Plans are based on the Islamic finance principles of co-ownership (Diminishing Musharaka) and leasing (Ijara), rather than the traditional lending/borrowing relationship.
Customers are not charged interest, which is prohibited in Islam. Customers acquire the property in partnership with the bank, and monthly payment contributions increase their share of the property over time. They also pay a rental charge to the bank for the proportion of the property they do not own yet. Upon completion of the payment terms, the customer becomes the sole owner of the property.
For more information about our full range of Buy-To-Let Purchase Plans, which includes Limited Company Buy-To-Let Purchase Plans, please click here.
YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR BUY TO LET PURCHASE PLAN
Note: Buy to Let Purchase Plans are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.