Al Rayan Bank, MBS Lending and Octane cut rates – round-up

The Shariah-compliant BTLPP products are available to UK residents who wish to purchase property in their own name, or in the name of a limited company. UK expats working overseas can purchase property in their own name.  

The new rental rates are available on a fixed and discounted basis from 3.19 per cent to 3.89 per cent for UK residents and 3.64 per cent to 4.64 per cent for UK expats working overseas.  

BTLPP products are also available for UK resident landlords looking to purchase their investment properties in a more tax efficient way, with rental rates ranging from 3.49 per cent to 4.19 per cent. All BTLPPs are available on a ‘rent only’’ basis and there are no early settlement fees incurred. 

Maisam Fazal (pictured), chief commercial officer at Al Rayan Bank, said: “As the largest provider of Sharia compliant home and property finance in the UK, Al Rayan Bank is committed to making our products as widely available as possible.   

“Reducing our rental rates by such a significant amount and introducing new five-year fixed rental rates means that more people will be able to apply for our buy to let products.” 

MBS Lending cuts rates and revamps product range  

MBS Lending, the Melton Building Society’s credit repair subsidiary, has reduced rates across its range of credit repair mortgages and enhanced its proposition with the addition of a new extended range of fixed rate mortgages.   

MBS Lending has also reduced completion fees on its Near Prime Credit Assist and Credit Recovery products.  

Within its near prime category, it has reduced the fixed rate product from 5.49 per cent to 4.99 per cent and its discounted product from 4.99 per cent to 4.49 per cent. MBS has also reduced completion fees from £1,395 to £995 on both these products.    

The bank will consider clients who have suffered with arrears, county court judgements, defaults, individual voluntary arrangements or debt management plans in this category. 

Dan Atkinson, head of sales and marketing at the Melton, said: “We consistently review our proposition to ensure we’re meeting the diverse needs of our customers.  

“These changes ensure we offer a balanced choice of discounted and fixed rate products at a competitive price that deliver great outcomes for our customers.”  

Octane Capital lowers rates on larger loans 

‘Product-less’ lender, Octane Capital, has reduced its risk rating due to the “improved outlook” for the UK property market and broader political stability following the December General Election result.  

The lender will be lowering rates on its larger bridging, developer exit and refurbishment loans by as much as two per cent per annum with immediate effect.  

As the lender does not offer a set range of products, the price and rate of each loan is dependent on risk and is applied on a case by case basis. 

The lender said its pricing deals and structure would make its larger loans “some of the most competitive in the market”. 

Mark Posniak, managing director of Octane Capital, said: “Like other lenders, we regularly review the macro-economic outlook and felt especially compelled to do so in the new year following the decisive General Election result.  

“Our in-house view is that a new environment of greater political certainty will see a lot of pent-up demand for property come through, with subsequent upward pressure on prices.”  

“We also believe that the Bank of England will counter any continued economic weakness with monetary easing, providing a further boost to the property market through lower borrowing rates,” he added.