A
buy-to-let mortgage that is Sharia compatible has been launched for
Islamic banking customers of Bristol and West.
The Arab Banking Corporation is offering the alburaq
buy-to-let mortgage in co-operation with the mortgage lender.
"Until recently Britain's Muslims have not had a real choice in how they invest their money in keeping with their faith," commented Alison Pallett, head of consumer lending at Bristol and West.
In order to comply with Islamic law, the mortgage is not operated based on interest rate. The
mortgage lender says that it is however a competitive mortgage product.
The mortgage is not available to
first time buyers, and mortgage applicants have to show proof of at least a year's recent Islamic banking activity.
The buy-to-let mortgage offers a
loan to value of 85 per cent on the value of the
property or the price – whichever is the lowest.
"We have found that our Muslim customers have a particular interest in owning property and by offering a
buy to let product which complies with Islamic law, we'll be opening up many more possibilities for them," Ms Pallett concluded.
