Al Rayan Bank has reduced the fixed rental rates of its 80 per cent, 70 per cent and 60 per cent finance-to-value home purchase plans.
The 70 per cent FTV fixed rental rate has reduced to 3.49 per cent, and the 80 per cent FTV to 3.69 per cent.
Rates for expats have also reduced. The 60 per cent FTV rate is now 3.59 per cent, the 70 per cent FTV 3.69 per cent, and the 80 per cent FTV is 3.89 per cent
Following the fixed period all rental rates revert to the Al Rayan’s variable rental rate. For home purchase plan products this is currently the Bank of England base rate plus 3.99 per cent.
Al Rayan Bank chief commercial officer Maisam Fazal says: “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.”
Home purchase plans 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.