Al Rayan Bank has launched a new limited company buy-to-let purchase plan for landlords to purchase their investment properties in a more tax efficient way.
The bank is offering customers a variable rental rate of 3.89 per cent, and a fixed rental rate of 3.99 per cent. The maximum finance-to-value on rent and acquisition products is 75 per cent, and 65 per cent FTV on rent-only.
Al Rayan Bank chief commercial officer Maisam Fazal says: “Al Rayan Bank has built its reputation on developing innovative Sharia-compliant and ethical banking products which meet its customers’ needs. The new limited company buy-to-let purchase plan broadens our offering and helps us to ensure we provide a full suite of products for landlords.
“This product will enable UK based landlords looking for an alternative to interest bearing property finance facilities.”
Al Rayan Bank’s limited company buy-to-let purchase plan uses the Islamic finance principles of co-ownership with leasing. Customers acquire the property in partnership with the bank, and monthly payment contributions increase their share of the home.