Al Rayan Bank mortgage review
Al Rayan Bank is a Sharia-compliant lender. This means its mortgages charge rent instead of interest.
What's in this review?
- Compare Al Rayan Bank's mortgage rates
- Al Rayan Bank's buy-to-let mortgage rates
- Al Rayan Bank lender profile
- What types of mortgage does Al Rayan Bank provide?
- How do I contact Al Rayan Bank?
- How do I apply for an Al Rayan Bank mortgage?
- Find a mortgage using a broker to compare the market
- What information is needed to apply
- Contact information (address, email etc)
- Can I make overpayments?
- Does Al Rayan Bank offer any customer incentives?
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.
Compare Al Rayan Bank’s mortgage rates
Al Rayan Bank’s buy-to-let mortgage rates
If you borrow £170,000 over a 25-year term at 1.75% p.a. (fixed) for 62 months reverting to 4.74% p.a. (variable) for the remaining term, you would make 62 monthly payments of £700.04 and 238 monthly payments of £912.95. The total payable would be £261,424.58, which includes interest of £90,685 and a product fee of £495. The overall cost for comparison is 3.6% APRC representative.
Al Rayan Bank lender profile
- Al Rayan Bank follows Sharia law, which means you will not be charged interest.
- Your monthly mortgage payments will increase your share in the property, which includes a rental payment for the bank’s share of the property.
London and Country Mortgage Experts
L&C is a specialist broker offering mortgage comparison & free advice.
- Compare over 80 mortgage lenders
- Fee FREE mortgage advice
- Personal customer service from start to finish
- Open 7 days a week
What types of mortgage does Al Rayan Bank provide?
How do I contact Al Rayan Bank?
You can discuss your queries about Al Rayan mortgages by visiting a local branch, filling out the contact form on its website or calling 0800 4083 093. Phone lines are open on weekdays from 9am to 7pm or Saturdays between 9am and 1pm.
How do I apply for an Al Rayan Bank mortgage?
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.
To be considered for an Al Rayan Bank mortgage, you must:
- Be aged 21 or over
- Be a UK resident or a UK national living abroad
- Secure the loan against a property valued at least £80,000
Mortgage loans can be between £30,000 and £1,500,000 depending on your circumstances. Mortgage terms can range between 7 and 32 years.
Find a mortgage using a broker to compare the market
What information is needed to apply
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.
Contact information (address, email etc)
You can call Al Rayan Bank on 0808 115 0985 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.
Can I make overpayments?
Does Al Rayan Bank offer any customer incentives?
Many customers appreciate the Sharia-compliant nature of Al Rayan Bank’s mortgage products.
Read more on this topic
Compare the best mortgage deals of September 2020 Everything you need to know about getting a cheap mortgage with the lowest rate and fees.
Historical price tracker: House prices, inflation and more Find out how the prices of common items in the UK have changed since 1980 in comparison to inflation.
What credit score do I need to get a mortgage? While there's no minimum credit score you'll need to be eligible for a mortgage in the UK, it's helpful to know how your credit rating can affect your chances, and the loan terms you're likely to get.
House intentions Finder reached out to the general public to see what factors play the biggest role when it comes to finding their ideal home.
Stamp duty cut: Buyers set to save thousands House buyers to benefit from a new temporary cut to stamp duty on the first £500,000 of a property sale until 31 March 2021.
Coronavirus property prices We have explored how house prices have been affected across the country during this time and how interest in renting has fluctuated in different regions.
Accelerate My Mortgage review This new cashback website will help you to shave years off your mortgage.
Finder Mortgages Customer Satisfaction Awards 2020 How did your mortgage provider fare in our latest customer survey? Find out the winner of this year's Finder Customer Satisfaction Awards.
Proportunity review Discover the pros and cons of taking out an equity loan with Proportunity.
Property flipping Our comprehensive guide to property flipping gives you all the information you need to make a profit, from finding the right property to the costs you need to consider.