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Islamic Bank of Britain cuts rates for Sharia-compliant BTL mortgage

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Islamic Bank of Britain cuts rates for Sharia-compliant BTL mortgage

Islamic Bank of Britain, the UK’s only wholly Sharia compliant retail bank, has lowered the rental rate for its Sharia compliant Buy to Let Purchase Plan product range.

The new variable rental rate of 4.89% will apply to both IBB BTLPP products, i.e.:

1.    Rent and acquisition BTLPP which requires a deposit of 25% (75% finance to value)

2.    Rent only BTLPP which requires a deposit of 35%  (65% finance to value)

The 0.6% cut is the first in a series of changes that IBB is planning to release across its Home Purchase Plan  and BTLPP products in the coming weeks.

Both of IBB’s BTLPP products are available to landlords of any faith.  Other features include:

-The ability to make additional acquisition payments, without penalty, subject to a minimum 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 (£750,000 in Central London) and minimum property value of £90, 000

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


“IBB has kept up with the pace of change in the BTL sector by launching new products and now a rate cut of 0.6%.  The Bank is committed to providing competitive Sharia compliant finance for landlords.  It is also committed to providing intermediaries with the opportunity to grow their business from this buoyant market.  With a competitive procuration fee for successful leads, 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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Barry Humphreys
18 Oct 2014 Barry Humphreys

I don't think that these figures are a surprise at all. It seems to me that the whole thing is a guessing game by these "experts" that make these assessments about what will be the future, you might as...

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sam hubbard
06 Oct 2014 sam hubbard

Good to see a common sense approach. Here, here!!!

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SLOWE
02 Oct 2014 SLOWE

Might be nice if Santander dropped the 4.74% SVR to Halifax / Nationwide levels of 3.99% or Woolwich's 3.89% as this would help thousands of Santander borrowers without them lifting a finger.

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John Wilson
23 Sep 2014 John Wilson

I am no lover of the banks, but this "they can afford it - bleed 'em dry" approach is such a transparent fund raiser to ensure the continued gravy train for the FCA employees, that it makes me...

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