11:00 AM, 4th December 2011, About 10 years ago 5
Islamic Bank of Britain has joined the throng as the latest lender to offer buy to let mortgages to landlords.
The IBB will consider applications from landlords of any faith for a Sharia-compliant mortgage.
The mortgage package is a 75% loan-to-value deal at 5.49% variable with a 1% arrangement fee.
Limits on lending include a maximum of five properties per landlord portfolio, a property value of no more than £500,000 outside London and £750,000 in the capital.
The loan to value on homes in London worth over £500,000 drops to 65%.
Speaking for the bank, Simon Walker said: “Buy-to-let is popular with investors again. Rental yields are increasing and property is seen as a good long-term investment. IBB’s Sharia compliant purchase plan will help fuel this growing sector by catering for landlords looking for Sharia compliant finance.”
As a Sharia product, IBB’s lending is based on joint ownership and rent. The landlord and bank buy the property jointly and the monthly payment increases the customer’s share in the property and includes rent on the share that the bank owns.
At the end of the term the customer will own the property outright.
Leeds Building Society has fee-assisted buy-to-let mortgages, with rates starting from 4.49% fixed for two years at 60% loan to value – rising to 4.99% at 70% loan to value.
Interest rates on fee-paying deals are also down by up to 0.40%.
Included are a free valuation up to £335 and free in-house legal services for standard remortgages.
Phil Coombes, head of intermediary sales at Leeds BS, said: “The society is benefiting first-time landlords, who may require help with up front costs, by offering market leading fees assisted deals across two, three and five-year periods.”
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Previous ArticleNew App to Help Contents Claims
Next ArticleEyesore Extensions Must Go, Planners Tell Landlords
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|