Home purchase plans arethe bank’s Sharia compliant alternative to a mortgage and the changes have made it more affordable for customers living in the UK and expats.
Al Rayan Bank has reduced the fixed rental rates of its 80%, 70% and 60% finance-to-value (FTV) home purchase plans (HPPs).
Home purchase plans arethe bank’s Sharia compliant alternative to a mortgage and the changes have made it more affordable for customers living in the UK and expats.
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.”
At 70% FTVthe fixed rental rate has been reduced to 3.49% and at 80% FTV cut to 3.69%. At 60% FTV, the expat fixed rental rate has been reduced to 3.59%, at 70% FTV, the expat fixed rental rate has decreased to 3.69% and at 80% FTV the expat fixed rental rate was cut to 3.89%.
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 thebank 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.
