Home Purchase Plan

For customers looking to move a conventional mortgage to an Islamic alternative, or for a better deal on existing Islamic home finance with another bank.

70%Finance to value

If a customer moves their home finance to Al Rayan Bank, we'll waive the admin fee, pay the valuation fee* and give them £300 cash back**

Up to 70% finance to value

Fixed 3.19%

  • Rental rate fixed until 31 December 2019
  • From 1 January 2020 reverts to Al Rayan Bank Variable Rental Rate which for HPP is currently 4.24% (base rate + 3.99% margin)
  • Administration fee of £399

Discounted Variable 3.39%

  • Rental rate discounted until 31 December 2019
  • Discounted from Al Rayan Bank Variable Rental Rate which for HPP currently is 4.24% (base rate + 3.99% margin)
  • Administration fee of £399

Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.

* Valuation fee paid up to a maximum of £600
** Cashback paid upon receipt of first monthly HPP payment

Procuration fees

For referred cases, Al Rayan Bank will pay a procuration fee upon completion of:

Home Purchase Plan 0.35% (gross)
Buy To Let Purchase Plan 0.50% (gross)

To register contact us online or by calling 0800 694 7238

Key features

General information

Finance amount: £30,000 to £1,500,000
Minimum property value: £80,000
Term: 7 - 32 years
Maximum number of applicants: Up to four applicants (all applicants must be owner occupier)
Admin fees:

£0

Valuation fees:

Al Rayan Bank will pay the valuation fee up to a maximum value of £600. This payment will only apply to the first completed valuation in relation to the HPP application

Legal fees: Al Rayan Bank has created a panel of solicitors who are experienced in the Islamic finance conveyancing process. If customers choose to proceed with one of our panel solicitors, Al Rayan Bank will make a £500 (including VAT) contribution towards the Al Rayan Bank legal costs on refinances. However, customers are not obliged to use one of our panel solicitors. For more information, please refer to the HPP Tariff List
Cashback: If customers choose to proceed with one of our panel solicitors, Al Rayan Bank will pay a 'cashback' of £300 to the customer following the customer's first monthly HPP payment
Minimum age of applicants: 21 years
Expat home finance Home Purchase Plans are available to UK nationals living and working abroad

Rent reviews

Fixed product

  • The fixed rental rate will end on 31 December 2019
  • The new rental rate will be effective from 1 January 2020
  • Rent will be reviewed quarterly thereafter in line with our standard product
  • No additional acquisition payments are permitted during the fixed period
  • Following the expiry of the fixed rental rate, additional acquisition payments can be made in the month of each rent review 

Discounted Variable

  • The discounted rental rate will end on 31 December 2019
  • The new rental rate will be effective from 1 January 2020
  • There will be four rent reviews a year in March, June, September and December
  • New rent rate effective from 1st April, 1st July, 1st October and 1st January
  • Additional acquisition payments can be made in the month of each rent review
  • Minimum £4,000 with a £25 administration fee

Margin

  • The Bank reserves the right to change the margin on its products however a cap applies of 2% 
  • Therefore Al Rayan Bank cannot increase the margin on its HPP products by more than 2% over the margin that applied at the outset
  • Al Rayan Bank cannot change its margin whilst a fixed rent rate applies
  • You will be given at least 30 days advance notice of any changes in the pricing structure

Settlement

  • The customer has the option to sell the property at any time without any penalties (subject to an administration fee to cover any costs)

Forms & other information

The following information leaflets should also be read:

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