Islamic Bank of Britain launches BTLPP
The product is available up to 75% loan to value at a rental rate of 5.49% with a 1% arrangement fee.
IBB has also announced a promotional procuration fee of 0.5% payable on referrals that drawdown prior to 31st March 2012.
The product is available for landlords for a portfolio of up to five properties.
There is no early repayment charge and the maximum loan size is up to £500,000 per property and £750,000 for properties in London. Finance above £500,000 will require a 35% deposit.
Simon Walker, head of sales at IBB, said: “Buy-to-let is proving to be popular with investors again. Rental yields are increasing and property is seen as a good long-term investment.
“IBB’s Sharia-compliant buy-to-let purchase plan will help fuel this growing sector by catering for landlords looking for Sharia compliant finance.”
Sharia law is the moral code and religious law of Islam. It prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money.
The buy-to-let purchase plan is designed to be fully Sharia compliant.