Of Special Interest
13th December 2011
Sharia compliant Buy to Let Purchase Plan
The Islamic Bank of Britain has introduced a Sharia compliant Buy to Let Purchase Plan. Similar to Sharia compliant regular home purchase products the basis is that the property is owned by the lender until the last payment is made. During that time the lender makes their profit by charging a rental to the residents. The source of the funds is also fully Sharia compliant.
The bank gave the following product information:
- Minimum deposit of 25%.
- Variable rate product with a rental rate currently of 5.49% with an arrangement fee of 1%.
- Can be used to finance up to five properties with advances between £70,000 and £500,000 each property.
- Ability to make additional payments and repay in full with no early settlement charge
- to be offered direct and through intermediaries