Al Rayan Bank launches buy-to-let purchase plan
Islamic Bank Al Rayan Bank has launched a limited company buy-to-let purchase plan (BTLPP) for landlords to purchase their investment properties in a more tax efficient way.
The bank, which is celebrating its 15th anniversary this year, is offering customers a variable rental rate of 3.89%, and a fixed rental rate of 3.99%. The maximum finance-to-value (FTV) on rent and acquisition products is 75%, and 65% FTV on rent-only.
Maisam Fazal, chief commercial officer at Al Rayan Bank, said: “Al Rayan Bank has built its reputation on developing innovative Sharia compliant and ethical banking products which meet its customers’ needs.
“The 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.