Al Rayan reduces rental rates across discounted variable HPP range

Al Rayan reduces rental rates across discounted variable HPP range

Martin Greenland | 15:59 Tuesday 21st November 2017

Al Rayan Bank has reduced rental rates across its entire range of discounted variable home purchase plans (HPPs) by 025%.

HPPs are Sharia-compliant mortgage alternatives which do not include interest.

The reductions include:

60% finance to value (FTV) (40% deposit); discounted variable rental rate reduced to 2.89%
70% FTV (30% deposit); discounted variable rental rate reduced to 2.99%
80% FTV (20%) deposit; discounted variable rental rate reduced to 3.19%.

The bank also has a 'fees-assisted' HPP range designed to make it easier for people looking to move an existing home finance product to one of its HPPs by contributing towards part of the upfront fees.

These are usually associated with refinancing from one mortgage provider to another.

Discounted variable rental rates across the fees-assisted range have also been reduced by 0.25%.

The reductions include:

fees assisted 60% FTV (40% deposit); discounted variable rental rate reduced to 3.04%
fees assisted 70% FTV (30% deposit); discounted variable rental rate reduced to 3.14%
fees assisted 80% FTV (20% deposit); discounted variable rental rate reduced to 3.34%.

All the above rates are discounted until 30^th June 2020 and subject to status.

Unlike conventional mortgages – where money is borrowed from a lender and repaid with interest – HPPs are based upon the Islamic finance principles of co-ownership (musharaka) and leasing (ijara).

Al Rayan reduces rental rates across discounted variable HPP range

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