How does it work?
Unlike a conventional mortgage where the purchaser borrows money from a lender which is then repaid with interest, the BTLPP uses the Islamic finance principles of a Co-ownership Agreement (Diminishing Musharaka) with Leasing (Ijara).
Your monthly BTLPP payment is made up of two elements: an acquisition payment and a rental payment. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to you.
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Rental rate
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Finance to value
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Administration fee
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Monthly payments
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Standard Product
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5.49% (Bank of England Base Rate + a margin of 4.99%)
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Up to 75%
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1.00% of finance amount
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Calculate
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Standard product is available for new purchases and refinancing.
YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON
YOUR BUY TO LET PURCHASE PLAN
There are a number of ways to apply for a BTLPP or to request more information:
Phone:
Please ring our BTLPP Specialist Sales team on 0800 4087 786*
(Mon - Fri 9am - 7pm, Sat 9am - 1pm)
*calls may be recorded for training and security purposes
Online:
Check your eligibility by using our Agreement in Principle
or to request a call back please click here
Branches:
You can visit one of our branches or agencies that are located throughout the UK.
| Maximum finance amount |
England/Wales - £500,000
Central London - £750,000
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| Maximum FTV |
England/Wales - Up to 75%
Central London - Up to 65%
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| Maximum portfolio |
Five properties across all providers
£2,500,000 across all IBB finance products
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| Minimum property value |
£100,000 |
| Term |
7 - 30 years |
| Maximum number of applicants |
2 |
| Administration fee |
1.00% - £499 payable on application and remaining balance payable prior to drawdown
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| Valuation and legal fees |
Paid by the applicant(s)
We will pay up to £400 (inclusive of VAT) towards the costs of our own solicitor's fees as a contribution towards supporting your HPP application
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| Minimum age of applicants |
25 years |
| Rent reviews |
Quarterly rent reviews in March, June, September and December
New rent rate effective from 1st April, 1st July, 1st October and 1st January
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| Margin |
The bank reserves the right to change the margin on it's products, however, a cap applies of 2%. This means that the bank cannot increase the margin on its BTLPP products by more than 2% over the margin that applied at the out set
You will be given at least 30 days advance notice of any changes in the pricing structure
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| Settlement |
The customer has the option to sell the property at any time without any penalties |
Our Buy To Let Purchase Plan has been approved by our Sharia Supervisory Committee.
To download the certificate of approval for our Buy To Let Purchase Plan, please click here.
To find out more about our Sharia Supervisory Committee, please click here.