Islamic Bank diversifies Sharia compliant range with rent-only product

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Islamic Bank diversifies Sharia compliant range with rent-only product

Islamic Bank of Britain, the UK’s only wholly Sharia compliant retail bank, has diversified its Sharia compliant Buy to Let Purchase Plan product range with the launch of a rent only BTLPP.

IBB’s BTLPP is a variable rental rate product available to landlords, of any faith, with a deposit of 35% at a rental rate of 5.49%. Other features include:

- The ability to make additional acquisition payments, without penalty, subject to a minimum amount of £4,000

- No early payment charge for clearing the finance in full

- An administration fee of 1% (a minimum fee of £995 applies)

- Minimum property finance of £30, 000, maximum finance of £500, 000 and minimum property value of £90, 000

Commenting on the launch Imran Pasha, Head of Sales and Service, Islamic Bank of Britain said:

“IBB launched its Sharia compliant Buy to Let Purchase Plan in November 2011 and we have seen a healthy demand for the product since then. The recent launch of the rent only BTLPP is the natural next step for the Bank.”

He also explained how the launch could benefit IFAs by saying, “The new BTLPP also represents a major opportunity for intermediaries looking to develop their business in the ethical and Sharia property finance market. There is a growing demand from landlords for Sharia compliant property finance. With a rent only product from IBB, IFAs can recommend a product that provides them with an affordable way to access it. IBB also offers financial incentives for the IFA who can refer successful leads. With a competitive procuration fee, which is currently matching the figures offered by other home finance providers for fully packaged cases, now is a good time for IFAs to consider working with IBB.”

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