Al Rayan Bank extends buy to let range

05 November 2019

Al Rayan Bank, the UK’s largest Islamic bank, is now offering landlords 80% finance to value for its Buy-to-Let Purchase Plan (BTLPP) products.  Previously, these products were only available up to 75% finance-to-value (FTV).

The Sharia compliant products are also available for UK expats living overseas.

  • 75% - 80% FTV: 3.74% discounted variable rental rate; 3.84% fixed rental rate 
  • 75% - 80% FTV: 3.99% expat discounted variable rental rate; 4.09% expat fixed rental rate 
Buy to Let Purchase Plans
Finance to value Discounted variable rate Fixed rate Expat Disc. variable rate Expat Fixed  rate
Up to 75% 3.64% 3.74% 3.89% 3.99%
75% to 80% 3.74% 3.84% 3.99% 4.09%
Fixed until 04.11.21 Admin fee 1% of finance balance (min £995)

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Maisam Fazal, Chief Commercial Officer at Al Rayan Bank, said: “With this latest product extension, the possibility of purchasing a buy-to-let property has been made more widely available.

“We’re continually striving to offer a full range of Sharia compliant best-in-class products to our customers of all faiths and none and this is the latest offering in our award-winning products.”

Al Rayan Bank's BTLPP uses the Islamic finance principles of co-ownership (diminishing musharaka) with leasing (Ijara).

Customers acquire the property in partnership with the bank, and monthly payment contributions increase their share of the property. They will also pay a rental charge to the bank for the proportion of the property they do not own yet.

Upon completion of the payment terms, the customer becomes the sole owner of the property. Limited Company Buy to Let Purchase Plans are available from Al Rayan Bank up to 75% FTV for customers who wish to buy investment property in a limited company’s name.

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