Thinking of investing in buy-to-let property

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An Englishman's home may be his castle, but for an increasing number of UK residents, that castle is a rented one. One sixth of the population, approximately 10 million people, now live in private rented accommodation, and this figure is expected to rise in the future.

It’s not surprising then that many people see this trend as a good opportunity for investment. If you're one of the many people considering buy-to-let finance, it’s important that you fully understand the costs involved. Before investing, ensure that you:

  • Can afford your contribution to purchase the property. Buy-to-let home finance agreements tend to require a higher customer contribution – typically at least 25% of the value of the property.
  • Know your monthly payments. It's important that you understand the payment cost, both now and in the future if rates increase. You can find online calculators that will enable you to do this, including Al Rayan Bank’s Buy to Let payment calculator.
  • Factor in all of your on-going expenses. Include landlords’ insurance, tenanting fees and management fees if you plan to use an agent, as well as maintenance and refurbishment costs, plus the costs of having your property stand empty if you cannot find a tenant for a period of time.
  • Understand all of the fees and charges. This includes arrangement fees, solicitor's fees, property valuation charges, survey fees etc.
  • Know the Return on Investment (ROI). Take time to check that you couldn't make your money work harder elsewhere, for example, in a high profit fixed term savings account.

Al Rayan Bank's lowest ever rental rates

Al Rayan Bank is currently offering a promotional* reduction of 1.00% on its Buy to Let Purchase Plan (BTLPP) and Buy to Let Rent Only Purchase Plan (BRO) products’ rental rates. The reduction means that landlords will benefit from the lowest BTLPP and BRO rental rates in the Bank’s history.

Discounted variable Fixed Finance to value (FTV)  
3.49%* 3.69%* 65% Find out more
3.89%* 3.99%* 75% Find out more

* Promotional rental rate. Al Rayan Bank reserves the right to withdraw the promotional rental rate at any time.

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