Islamic Bank of Britain launches Sharia compliant Buy to Let mortgage alternative
Islamic Bank of Britain plc (IBB, www.islamic-bank.com) the UK’s only wholly Sharia
compliant retail bank, has entered the Buy to Let mortgage market with the launch of its Sharia compliant Buy to Let Purchase Plan (BTLPP). Landlords looking for ethical and Sharia compliant finance can access IBB’s BTLPP with a deposit of only 25%.
IBB’s BTLPP is a variable rate product available at a rental rate of 5.49% with an arrangement fee of 1%. Further features of the product include:
- Finance for landlords with a portfolio of up to five properties
- The ability to make additional payments
- The ability to clear the finance in full at any point without an Early Payment Charge
- Finance available from £70,000 and up to £500,000 per property
- IBB’s BTLPP is available directly through the Bank’s branches, contact centre and intermediaries
Commenting on the launch Sultan Choudhury, managing director of IBB said, “Buy to Let is proving to be popular with investors again. Rental yields are increasing and property is seen as a good long-term investment. IBB’s Sharia compliant Buy to Let Purchase Plan will help fuel this growing sector by catering for landlords looking for Sharia compliant finance. IBB anticipates a strong demand for the newly launched product.”
As a Sharia compliant product, IBB’s BTLPP is based on joint ownership and rent. The customer and the Bank buy the property jointly. The monthly payment increases the customer’s share in the property and includes rent on the share that the Bank owns. At the end of the term the customer will own the property outright.
The source of funds for IBB’s BTLPP is 100% Sharia compliant. IBB does not use any interest bearing instruments like bonds or derivatives. Instead it uses its own funds and deposits from customers, all managed entirely in accordance with ethical and Sharia principles.
About Islamic Bank of Britain
Islamic Bank of Britain plc (Bank) has pioneered Sharia compliant retail banking in the UK and has launched a wide range of products, including the Home Purchase Plan (the halal mortgage alternative) Current Accounts and Savings Accounts. The Bank was also the first to introduce Sharia compliant business banking to the UK, and now offers a wide range of institutional and business banking products and services, including Commercial Property Finance.
Several of the Bank’s products remain unique in the UK retail market.
The Bank is authorised and regulated by the Financial Services Authority and is a member of Financial Services Compensation Scheme. All products offered by the Bank are fully approved by the Bank’s Sharia Supervisory Committee (SSC).
Sharia compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks
Whilst the Bank offers products and services that are designed in accordance with Sharia principles, it is an inclusive Bank and welcomes customers of all faiths.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request. The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
Issued by Islamic Bank of Britain Plc, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH