Al Rayan Bank has announced the launch of two new home purchase plan (HPP) products.
The new 'low deposit' HPPs will assist with up to 95% financing required for residential properties and are designed to replace the Help to Buy: HPP guarantee product which was withdrawn at the end of December 2016.
The maximum loan size is £400,000, and the rental rates for 90% finance to value (FTV)are fixed at 4.49%, and 4.99% for 95% FTV available until 30th September 2021.
“Following the closure of the government's Help to Buy scheme in 2016, we've launched a home purchase plan which requires just 5% deposit to help first-time and existing homebuyers get into the property market with a smaller deposit,” said Keith Leach, chief commercial officer at Al Rayan Bank.
“The average size of the deposit required for home movers has increased over 90% over the last decade, making it increasingly difficult for first-time buyers.
“These new products offer consumers an affordable and ethical way of breaking into, or moving up, the property ladder.”
Al Rayan also offers other alternative home finance products, including 60%, 70%, and 80% FTV plans.
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