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JANUARY 12, 2017 | BY A & S Property

Sharia compliant BTL mortgage range launched in Scotland

Buy-to-let landlords north of the border are being offered an alternative to conventional, interest-bearing, property finance products, following the launch of Islamic buy-to-let property finance in Scotland.

Al Rayan Bank, the only wholly Sharia compliant retail bank in Scotland, this week announced that they will be offering customers a range of Sharia compliant buy-to-let purchase finance deals, with borrowing rates starting from 2.99%.

Landlords can take advantage of occupancy payment rates at 2.99% with a 35% deposit and from 3.39% with a 25% deposit, fixed until 31 December 2018.

As an Islamic bank Al Rayan Bank does not use any interest-bearing products to finance customers’ properties, but rather uses the savings deposits from its customers, managed in accordance with ethical, Sharia principles.

Buy-to-let landlords turning to Al Rayan Bank for finance will acquire property in Scotland the Islamic finance principle of co-ownership (Musharaka), purchasing the property together with the Bank, as partners, rather than in the form of a loan which is repayable with interest.

Sultan Choudhury, Al Rayan Bank CEO, commented: “We’re delighted to continue the momentum of our successful launch in Glasgow with the announcement of buy-to-let purchase plans for Scotland.

“Islamic buy-to-let property finance is an important addition to the Scottish market and will provide landlords with a practical alternative to conventional, interest-bearing, property finance products; one that will not compromise their values or faith.”

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