The Islamic Bank of Britain (IBB) has launched a new rate of 5.49 per cent for its Home Purchase Plan, the Shariah compliant alternative to a mortgage. This rent rate is the lowest ever for a Shariah compliant mortgage alternative in the UK, and refinance customers will also be given free valuation and legal fees of up to £1,200.
The scheme is aimed at both refinancing customers and new purchasers, and the new rental rates will begin at 5.49 per cent. The 5.49 per cent rent rate is available for refinancing deals up to a maximum finance-to-value (FTV) of 70 per cent. The same rate also applies to new purchases with a maximum FTV of 80 per cent.
There is a one-off administration fee of £299 on both products and limit on the amount of loan with a minimum of £70,000, and maximum of £750,000 finance. The rental rate is discounted until the end of March 2010 and there are no penalties for making extra capital payments, unless the whole balance is repaid.
Sultan Choudhury, commercial director at IBB, said: « Despite the recent market turmoil Islamic Banking is considered by many as a stable alternative to conventional finance providers, which are struggling under the strain of the credit crunch. « With these fantastic new Home Purchase Plan (HPP) rates, Islamic Bank of Britain can now be seen as both a safe and affordable alternative to the conventional mortgage. ».
Source: Financial Times