Al Rayan Bank follows Sharia law, which forbids companies from charging interest. This means its mortgages work a little differently from most.
Its version of a repayment mortgage works similarly to a shared ownership agreement. You’ll buy a percentage of your property with your mortgage deposit, while the rest will be owned by the bank. Your monthly payment increases your share in the property, but also includes a rental payment for the bank’s share of the property. At the end of the mortgage term you will own the property outright.
The bank’s version of an interest-only mortgage involves an agreement to make these rental payments for the length of the term, with an option to buy the bank’s share of the property outright afterwards.
Al Rayan Bank’s mortgages have no early repayment charges.
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You can apply for an Al Rayan Bank mortgage by visiting one of its branches, calling 0808 231 3363 or filling out its online application form.
In all circumstances, you’ll need your personal details and detailed information about your income and outgoings to hand.
Eligibility criteria
To be considered for an Al Rayan Bank mortgage, you must:
Mortgage loans can be between £30,000 and £1,500,000 depending on your circumstances. Mortgage terms can range between 7 and 32 years.
As well as your personal details, you’ll need to supply various financial and employment details, including information about your employment status, job type, any previous or existing mortgages, anticipated retirement income etc.
You can call Al Rayan Bank on 0800 408 6407 or send an email via the form on its website.
Alternatively, visit a local brank or send a letter to Customer Services team, Al Rayan Bank PLC, PO Box 12461, Birmingham, B16 6AQ.
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