Al Rayan Bank expands Home Purchase Plan range and cuts rental rates on existing HPP products
Al Rayan Bank has expanded its Home Purchase Plan (HPP) product range to include the Bank’s first ever five-year fixed rental rate products. The UK’s oldest and largest Islamic bank has also made significant reductions to the rental rates across its entire HPP range, with rental rates now available from just 2.94%*.
The new five year fixed range is available to customers with as little as 5% deposit and can be taken on a standard basis, or through the Bank’s ‘fees-assisted’ option, which sees the Bank contribute towards many of the upfront costs associated with purchasing a new home**.
Rental rate reductions of up to 40 basis points have been made across the Bank’s HPP range, with a 2-year 60% finance to value discounted variable HPP now available from just 2.94%*.
Highlights of the new range include:
- The Bank’s first ever five-year fixed rental rate HPPs, available on a standard and fees-assisted basis for customers with deposits from 5% to at least 40%
- Rental rate reductions of up to 40 basis points across the Bank’s HPP range, with rental rates now available from 2.94%*
- Products available to UK residents and UK expats working overseas and looking to purchase a home in the UK.
Maisam Fazal, Chief Commercial Officer at Al Rayan Bank, said: “We’re expanding our home finance range for UK residents and expats to cater for the diverse needs in the housing market, having listened to our customers. The new five-year fixed rental rates will be welcomed by homebuyers looking to plan their monthly outgoings for the longer term, something that many consumers seek to do, regardless of where they are on the property ladder.
“We are also delighted to be able to make substantial reductions to our HPP rental rates as this helps ensure that ethical, Sharia compliant home finance is available to an even wider group of UK consumers.”
HPP customers’ monthly payments are made up of two elements, an acquisition payment that increases their share of the property and a rental payment for the use of the portion that the Bank still owns. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to the customer.
Al Rayan Bank currently serves over 90,000 customers through its branch, telephone and mobile banking channels. As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
* Two Year Discounted Variable 60 % Finance To Value
** Valuation fee paid up to a maximum of £600. Cashback paid upon receipt of first monthly HPP payment. Fees Assisted available up to 80% FTV