Al Rayan Bank is a Sharia-compliant lender. This means its mortgages charge rent instead of interest. Here’s what you need to know.
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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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.
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