Real estate financing

Arab Bank Europe currently lend on residential property in London, Paris, French Riviera, French Alps and Marbella.

We may consider a request to lend against residential real estate in the UK and Europe outside these areas on a case-by-case basis for existing clients of Arab Bank Group.

Solutions

Non-Resident Mortgage

Arab Bank Europe offers mortgages to non-residents of the UK and the EEA who wish to purchase (or re-mortgage) property for their personal use, that is, ‘owner-occupied’ residential property. Shariah Compliant options are also available in the UK.

Buy to Let

Arab Bank Europe offers Buy to Let Mortgages to individuals and companies looking to purchase properties for investment purposes (i.e. Buy to Let). Shariah Compliant options are also available in the UK.

We offer financing of up to 70% of the property value for properties located in London and within the M25. For properties outside this area, lending is capped at 50% of the property value.

Facilities are available with a tenor of 5 to 10 years, with both capital repayment and interest-only options. Loan margins are determined on a case-by-case basis. Clients may choose between fixed or floating rates, with amortisation periods of 20 to 25 years and quarterly repayments.

Security is required in the form of a first legal charge over the property. In addition, borrowers must maintain a Debt Service Reserve Deposit equivalent to six months of debt repayment. A personal guarantee is required when borrowing through a corporate entity, and an assignment over rental income applies in the case of buy-to-let financing.

All legal fees, including both the Bank’s legal costs and those of the borrower, are payable by the borrower in full. Arrangement and valuation fees are also applicable.

Islamic Real Estate Financing

Arab Bank Europe offers tailored Islamic finance solutions for UK-based investment properties. Our fully Shariah-compliant structures provide clients with a transparent way to invest or buy property for your own use, exclusively available for properties located in the UK. With the guidance of your dedicated Relationship Manager, you will benefit from expert support throughout your property purchase journey.

Explore Islamic Banking

Find out more

For more information about our range of Real Estate services please reach out to the Private Banking team below or contact your Relationship Manager.

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