Islamic bank enters buy-to-let market

Islamic buy-to-let finance is now available, after the Islamic Bank of Britain entered the market with the launch of its Sharia-compliant buy-to-let purchase plan.

The product, an alternative to a conventional mortgage, is available to landlords of any faith, and who have a 25% deposit.

IBB’s buy-to-let mortgage product is available at a rental rate of 5.49% with an arrangement fee of 1%. Further features of the product include:

“¢ Finance for landlords for a portfolio of up to five properties
“¢ The ability to make additional payments
“¢ The ability to clear the finance in full at any point without an early payment charge
“¢ Finance of 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 the bank, 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 anticipates a strong demand for the newly launched product.”