Buy-to-let landlords seeking an alternative to conventional, interest-bearing, property finance products, may be interested to learn that Islamic buy-to-let property finance is being offered by Al Rayan Bank, with reduced rates now available on its buy-to-let products.
The bank, which describes itself as the largest and oldest Sharia-compliant bank, has removed its 75% finance-to-value (FTV) requirement, and has made the new rates, reduced by up to 1%, available to all customers requiring up to 75% FTV.
The products include a discounted variable offer at 3.14% until 30 June 2020 and a fixed offer at 3.24% until 30 June 2020.
The products come with a 1% product fee, set at a minimum of £995.
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 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.