Buy-to-let landlords north of the border are being offered an alternative to conventional, interest-bearing, property finance products, following the launch of Islamic buy-to-let property finance in Scotland.
Al Rayan Bank, the only wholly Sharia compliant retail bank in Scotland, this week announced that they will be offering customers a range of Sharia compliant buy-to-let purchase finance deals, with borrowing rates starting from 2.99%.
Landlords can take advantage of occupancy payment rates at 2.99% with a 35% deposit and from 3.39% with a 25% deposit, fixed until 31 December 2018.
As an Islamic bank Al Rayan Bank does not use any interest-bearing products to finance customers’ properties, but rather uses the savings deposits from its customers, managed in accordance with ethical, Sharia principles.
Buy-to-let landlords turning to Al Rayan Bank for finance will acquire property in Scotland the Islamic finance principle of co-ownership (Musharaka), purchasing the property together with the Bank, as partners, rather than in the form of a loan which is repayable with interest.
Sultan Choudhury, Al Rayan Bank CEO, commented: “We’re delighted to continue the momentum of our successful launch in Glasgow with the announcement of buy-to-let purchase plans for Scotland.
“Islamic buy-to-let property finance is an important addition to the Scottish market and will provide landlords with a practical alternative to conventional, interest-bearing, property finance products; one that will not compromise their values or faith.”