Islamic Bank of Britain cuts rates for Sharia-compliant BTL mortgage
Tuesday, April 23, 2013
Published by AMY LODDINGTON
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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