hit counter

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

Line Spacing+- AFont Size+- Print Forward to a friend Mortgages
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.”

No Comments

This Article Has No Comments Yet

But You can be first to leave a comment

Latest Comments

As we move closer to the new pensions freedoms, we need to put customers at the centre of what we do. If people decide not to take up the offer of free guidance or look for advice, we need to find a way...

view article

Despite legislative attempts to protect clients, a bank will always sell its clients the most profitable product it can legally get away with. The most profitable products are the ones with the highest...

view article

The greatest challenge to the committee’s hawks are poor Eurozone growth, a housing market coming off the boil, lower than expected inflation and the spectre of a major political shift with the general...

view article

Gross mortgage lending dipped in September, suggesting that buyers have concerns about the prospect of a rate rise. However, since then, the Bank of England has sent clear indications that interest rates...

view article

In The Spotlight

Joanne Edwards, Head of Sales, Nemo Personal Finance

We spoke to Joanne Edwards, Head of Sales at Nemo Personal Finance, about the future of secured lending regulation and whether consumer service has suffered with the rising popularity of secured lending, Read more

Latest Tweets

Subscribe Our Mailing List