Landlords with a deposit of 35% (65% finance to value) can now access finance from just 4.49%, with an option to take a rent-only BTLPP. The 0.4% cut is the latest in a series of rental rate reductions the Bank has applied to both its residential and buy to let finance products.
Landlords, of all faiths and ethical beliefs, can now access Sharia compliant and ethical rental property finance with deposits of 25% and 35% as follows:
25% deposit (75% finance to value)
- Discounted variable rental rate BTLPP at 4.89% (discounted by 0.60%) until 30 June 2015
- Payment consists of both acquisition and rent payments
35% deposit (65% finance to value)
- Discounted variable rental rate BTLPP at 4.49% (discounted by 1.00%) until 30 June 2015
- Payment can either be rent-only or acquisition and rent
Other product features include:
- The ability to make additional acquisition payments, subject to a minimum of £4,000 and a small administration fee
- No penalty for clearing the finance in full early
- An administration fee of 1% (a minimum fee of £995 applies)
- Minimum property finance of £30,000, maximum finance of £500,000 (£750,000 in Central London) and minimum property value of £90,000
Commenting on the new rental rates and products, Imran Pasha, Head of Sales and Service, Islamic Bank of Britain said:
“IBB has reduced its rental rates again, specifically for landlords with a deposit of 35%, to 4.49%. This deal comes with a rent-only payment option, which helps to lower the landlord’s monthly payments even further. IBB’s recent rental rate reduction has been made in response to demand from investors keen to access affordable, Sharia compliant buy to let products which allow them to maximise the potential of the active rental market.”
