Financial Reporter


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

+- A+-
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.”

Got something to say? Leave a comment below:

You must be logged in to leave a comment

More articles from Mortgages


Teachers BS launches new HTB and Shared Ownership fixes

Tesco Bank cuts fixed rates

Half of buyers want return to 100% mortgages

CML: first-time buyer lending soars in Q3

Gross mortgage borrowing at seven-year high

Barclays launches new fixed rate range

Latest from Property Reporter

10 tips to help you move home during the Christmas run-up

Residential mortgage rates adjusted at TSB

New HTB fix launches at Teachers BS

Fixed rates cut at Tescos Bank

Latest from Commercial Reporter

80% SMEs happy not to seek finance in Q3

Bridging growth trends slow in September

Autumn Statement: 3% stamp duty rise for BTL and second homes

Autumn Statement: small business rate relief scheme extended

Latest Comments

Ouch. That's another blow to landlords, so soon after the cut in mortgage interest tax relief. In the space of two announcements, George Osborne has become Enemy No1 for the buy-to-let sector.

view article

Given that this translates to a deposit of £25,000 on the average London house price, I can't imagine it will help too many who are struggling to get on the ladder in the first place.

view article

Housing market activity continues to pick up as we head towards the end of the year, with gross mortgage borrowing at its highest level for seven years.

view article
Melanie Prendivillle
Melanie Prendivillle 20 Nov 2015

The horses have bolted out of the open gates and it is too late after 7 years to get them. The FSA and Hector Sants was responsible for allowing HBOS to run riot with the Self-Cert Mortgages that flooded...

view article
Melanie Prendivillle
Melanie Prendivillle 20 Nov 2015

In 2005 I complained to the HBOS 37 year old CEO Andrew Hornby that I was not happy with the irresponsible lending to my clients once they gave them a mortgage and they owned my clients. The Answer from...

view article

Vastly inconsistent house price growth in different regions is damaging for the overall health of the market as it forces people away from their preferred location of choice.

view article

Supporting our ageing population is one of the biggest challenges facing UK financial services. We wholeheartedly welcome the desire to help more people benefit from their housing wealth in later life....

view article
Solicitor2Flipper 06 Nov 2015

I never quite understood George Osborne's "levelling the playing field" quip, as after all buyer-occupiers pay neither income nor capital gains taxes on their properties. I guess it is what it is though. Whilst...

view article

We have been saying for months that the economy is not strong enough to cope with a rate rise and finally the Bank of England has admitted that this is the case.

view article
steve scrivener
steve scrivener 29 Oct 2015

As a Financial Planner of 20 plus years, I can say categorically that withdrawal of tax relief to pension savings would be a massive mistake. I predict a huge reduction in pension savings if this what

view article

Today's figures, which highlight a sustained growth in lending, especially in the buy-to-let sector, are a clear indication of a boost in consumer confidence across the UK.

view article

The 1% price rise seen in September was driven by one factor above all: weak supply.

view article

Latest Tweets