Al Rayan Bank launches ‘fees assisted HPPs’ for refinance customers
Al Rayan Bank has announced the launch of a new range of Home Purchase Plans (HPPs) which are designed to make it easier for people looking to move an existing home finance product to the Sharia compliant provider.
The ‘fees assisted’ HPP range will see Al Rayan Bank assist with customers’ refinance costs by waiving or contributing towards some of the upfront fees normally associated with refinancing home finance from one provider to another.
The following occupancy payment rates are available for ‘fees assisted’ HPP customers until30 June 2019:
They will revert to the Al Rayan Bank Variable Occupancy Payment Rate.
For HPP and HPPS products this is the Bank of England Base Rate (BBR) +3.99%:
Al Rayan Bank’s HPPs in Scotland use the Islamic finance principle of a co-ownership (Diminishing Musharaka) with a Sharia compliant Co-Beneficiaries Agreement.
Customers’ monthly HPP payments are made up of two elements, an acquisition payment and an occupancy payment.