Al Rayan Bank launches tax efficient Buy To Let Purchase Plan

Al Rayan Bank, the UK's largest Islamic Bank, has launched a new Limited Company Buy To Let Purchase Plan (BTLPP) for landlords to purchase their investment properties in a more tax efficient way.

The Bank, which is celebrating its 15th anniversary this year, is offering customers a variable rental rate of 3.89%, and a fixed rental rate of 3.99%. The maximum finance-to-value (FTV) on rent and acquisition products is 75%, and 65% FTV on rent-only.

Maisam Fazal, Chief Commercial Officer at Al Rayan Bank, said: "Al Rayan Bank has built its reputation on developing innovative Sharia compliant and ethical banking products which meet its customers’ needs. The new Limited Company Buy To Let Purchase Plan broadens our offering and helps us to ensure we provide a full suite of products for landlords.

"This product will enable UK based landlords looking for an alternative to interest bearing property finance facilities."

Al Rayan Bank's Limited Company Buy To Let Purchase Plan uses the Islamic finance principles of co-ownership with leasing. Customers acquire the property in partnership with the bank, and monthly payment contributions increase their share of the home.

As an independent UK, bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Buy to let property finance is not regulated by the FCA or PRA.