Home Purchase Plan

Sharia compliant mortgage alternatives for customers
able to contribute at least 20% of the property's value
as a deposit.

80%Finance to value

Up to 80% finance to value

Fixed 3.24%

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

Discounted Variable 3.44%

  • Rental rate discounted until 31 December 2019
  • Discounted from Al Rayan Bank Variable Rental Rate which for HPP 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.

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 £750,000 
Minimum property value: £80,000
Term: 7 - 32 years
Maximum number of applicants: Up to four applicants (all applicants must be owner occupier)
Fees:

Administration fee - £399

Valuation and legal fees: Paid by the applicant(s).

Al Rayan Bank has created a panel of solicitors who are experienced in the Islamic finance conveyancing process. If you choose to proceed with one of our panel solicitors, Al Rayan Bank will make a £400 (including VAT) contribution towards the Al Rayan Bank legal costs. However, customers are not obliged to use one of our panel solicitors. For more information, please refer to the HPP Tariff List.

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
  • 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)

HPP standard process

There are four key parties involved in the processing of a Home Purchase Plan: the customer, their solicitor, Al Rayan Bank and Al Rayan Bank’s solicitors. The role each plays is outlined below in our high level overview of the standard process.

HPP-process

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