âOur new product range means our new customers now have products priced from the equivalent of 5.49% on their home finance,â explains Keith Leach, Head of alburaq. He continues: âThe new year could bring even lower rates for our customers. If rates continue to fall as predicted, from March 09 many of our customers could be paying a rate equivalent to 4.5% or less.
In addition to the improving prices, there are plenty of other advantages for those choosing alburaqâs Islamic alternative. Recently, banks have been criticised for varying margins; imposing collar rates and reducing the range of mortgage products they offer.
âCollar ratesâ have made the headlines recently as many mortgage holders have discovered to their cost that their mortgage payments will not fall inline with the general drop in rates.
alburaq works very differently, as Leach explains: âWhen applying for a mortgage, the public would be well-advised to study carefully what margin will be applied, for how long it is guaranteed and whether there is a âcollarâ rate. One of the distinguishing features of our products is that we fix our margins so these are clearly known from the outset and we donât have a âcollarâ on our rates. In addition, we donât tie-in our customers for when we offer incentives, like fees assisted or cashback offers. We also allow unlimited overpayments, which isnât always available with other Islamic or conventional mortgages.â
Leach continues: âUnlike many of the UK banks, we continue to offer a full range of products and we are still offering buy-to-let finance â which has almost disappeared from the conventional market.â