Al Rayan Bank has reduced rental rates for both its discounted variable rates and fixed rental rates within its home purchase plans.
The rental rates for the bank’s 60 per cent, 70 per cent and 80 per cent finance-to-value HPPs have been cut by 0.50 per cent.
Additionally, its 60 per cent FTV discounted variable rental rate product has been reduced to 3.14 per cent and its fixed rental rate cut to 3.44 per cent. Both products required a 40 per cent deposit.
The 70 per cent FTV discounted variable rental rate product, meanwhile, has been cut to 3.24 per cent and the fixed rental rate product reduced to 3.54 per cent. This range required a 30 per cent deposit.
Al Rayan Bank’s, 80 per cent FTV discounted variable rental rate product has been chopped to 3.44 per cent and its fixed rental rate cut to 3.74 per cent. A 20 per cent deposit is required for these products.
The bank has also reduced rental rates by 0.50 per cent on its fees assisted HPP range.
Following the fixed or discounted period, all rental rates will revert to the Al Rayan Bank variable rental rate, which is the Bank of England base rate plus 3.99 per cent.
Al Rayan Bank chief commercial officer Maisam Fazal says: “We’re committed to providing a full range of home finance options to all of our customers.
“By reducing the rental rates on our HPP products we are making Sharia compliant home finance more accessible to individuals whatever stage of the property ladder they are on.”