Al Rayan Bank launches Scottish Buy to Let Property Finance range

10 January 2017

Just one month after establishing its presence as the only wholly Sharia compliant retail bank in Scotland, Al Rayan Bank today announced the launch of Sharia compliant Buy to Let Purchase Plans (BTLPPs) for the Scottish market. The BTLPPs will enable Scottish landlords to benefit from occupancy payment rates as low as 2.99%* and will enhance the Bank’s existing home and property finance range for Scotland, which already provides Sharia compliant Home Purchase Plans (HPPs) and Commercial Property Finance (CPF).

The occupancy payment rates for BTLPP in Scotland are as follows:

  • 35% deposit contribution (65% finance to value): fixed occupancy payment rate of 2.99% and discounted variable occupancy payment rate of 3.19% until 31 December 2018
  • 25% deposit contribution (75% finance to value): fixed occupancy payment rate of 3.39% and discounted variable occupancy payment rate of 3.49% until 31 December 2018

Following the fixed or discounted period, all occupancy payment rates will revert to the Al Rayan Bank Variable Occupancy Payment Rate. For BTLPP products this is currently Bank of England Base Rate (BBR) plus 4.99%.

Unlike conventional buy to let mortgages, where the landlord borrows money from a lender and pays it back with interest, Al Rayan Bank’s buy to let customers in Scotland will buy their properties using the Islamic finance principle of co-ownership (Musharaka), purchasing the property together with the Bank, as partners. Each month they will make an acquisition payment which will increase their stake in the property. They will also pay an occupancy payment under a co-beneficiaries agreement for use of the Bank’s share of the property. At the end of the finance term, when all payments have been made the customer will have sole ownership of the property.

Commenting on the launch, Sultan Choudhury, Al Rayan Bank CEO said, “We’re delighted to continue the momentum of our successful launch in Glasgow with the announcement of Buy to Let Purchase Plans for Scotland. Islamic buy to let property finance is an important addition to the Scottish market and will provide landlords with a practical alternative to conventional, interest-bearing, property finance products; one that will not compromise their values or faith.”

As an Islamic bank Al Rayan Bank does not use any interest-bearing products to finance customers’ properties. Instead it uses the savings deposits from its customers, managed in accordance with ethical, Sharia principles.

Intermediaries only: Intermediaries can find out more by accessing Al Rayan Bank’s dedicated intermediary support service, which can be contacted on 0800 694 7238 or visiting Upon registration, Intermediaries will be able to introduce business to Al Rayan Bank by referral, i.e. the provision of customer contact details.

Al Rayan Bank has been a pioneer of British retail Islamic banking for 12 years. The first wholly Sharia compliant retail bank in the UK, it has earned a reputation for providing innovative products which appeal to people of any faith. Last year Al Rayan Bank was named by Global Finance magazine as one of the best Islamic banks in the world, in its annual list of the World’s Best Islamic Financial Institutions, and by Trade Finance Global as the Best Islamic Finance Services in Western Europe.

As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of Financial Services Compensation Scheme.

Al Rayan Bank’s Glasgow office can be found at 2 Fitzroy Place, Glasgow. G3 7RH

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* Occupancy payment rate of 2.99% applies to 65% FTV BTLPP

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