alburaq, the leading provider of Islamic home finance in the UK, is launching a new fixed priced Shariah compliant product for the Buy-to-Let investor. For anyone looking at investing in the Buy-to-Let market alburaq will fix the rent until 30 September 2008 at a total rental rate equivalent to 6.49%pa*. Thereafter the rate will be calculated every 6 months, on the basis of 6 month LIBOR** (on the 1st September and 1st March) plus a fixed margin of 1.79% (which is then the guaranteed margin for the remainder of term)
- Obtain up to 85% of the property value/purchase price - whichever is lower
- Build a portfolio of up to 15 properties
- No tie in, can be fully paid at anytime
- Make additional over payments prior every 6 months
- Can be in addition to your existing home finance agreement or mortgage
‘It is very important for us to be providing modern and competitive products whilst maintaining the strictest level of Shariah compliance. Our new fixed priced Buy-to-Let product is the first time we have offered a fixed price alternative to a conventional interest mortgage,’ said Keith Leach, Head of alburaq at ABC International Bank plc.
‘With the Muslim finance market growing all the time, we are determined to offer a comprehensive array of products that provide our customers with the same choices that the mainstream market offers. This fixed rate Buy-to-Let product is the latest in our growing portfolio,’ said Keith Leach.
alburaq’s Shariah compliant home-finance and Buy-to-Let finance schemes have generated considerable attention from the Muslim community since launch. Traditional interest based mortgages have been out of the question for many, so the only choice for home ownership has been either going against the faith, or avoiding a mortgage altogether.
Ownership of property has always held a strong attraction for customers as a way to potentially earn a return from rental income and, if property prices rise, capital appreciation on investments. Earning an income from property is considered permissible within Islam, provided that the property is not involved with immoral or prohibitive activities, such as gambling or the sale of alcohol.
The alburaq range of home finance products is available either directly or through selected IFAs. alburaq home finance products are also accessible through the Islamic Bank of Britain and Lloyds/TSB