Al Rayan Bank reduces rental rates across Home Purchase Plans
Al Rayan Bank has reduced the fixed rental rates of its 80%, 70% and 60% finance-to-value (FTV) Home Purchase Plans (HPPs), making ethical Sharia compliant home finance more affordable for customers living in the UK and expats.
The rental rate reduction is available from 15 May 2018 across fixed HPP products as follows:
- 70% FTV, fixed rental rate reduced to 3.49%
- 80% FTV, fixed rental rate reduced to 3.69%
- 60% FTV, expat fixed rental rate reduced to 3.59%
- 70% FTV, expat fixed rental rate reduced to 3.69%
- 80% FTV, expat fixed rental rate reduced to 3.89%
Following the fixed period, all rental rates will revert to the Al Rayan Bank variable rental rate. For HPP products currently this is the Bank of England Base Rate (BBR) plus 3.99%.
Maisam Fazal, Chief Commercial Officer at Al Rayan Bank, said: "Our home finance offering is designed to appeal to those seeking ethical, Sharia compliant products to either help them get on the property ladder or move up it. We are committed to providing a suite of home finance solutions that will appeal to those of all faiths and none.
"By reducing the rental rate of these HPP products, we are making house financing accessible to all, whether they are already living in the UK or living overseas and want to buy property back home."
Al Rayan Bank is the only UK bank to offer a full range of Sharia compliant home finance products, which includes products specifically designed to help customers with smaller deposits, typically first-time buyers. The Bank’s 90% and 95% FTV HPPs are available with fixed rental rates of 4.49% and 4.99% respectively.
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.
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.Go Back