Islamic Bank of Britain’s Home Purchase Plan has been approved by the Bank’s Sharia’a Supervisory Committee. It is available to Muslim and non-Muslim customers as an alternative to a conventional mortgage.
How does it work? The Home Purchase Plan is based on the accepted and widely used Islamic financing principles of Ijara (leasing) and Diminishing Musharaka (reducing partnership).
IBB will contribute 60% and you 40% of the purchase price. Over a period of up to 30 years, you will make monthly purchase instalments through which the Bank will sell its share (60%) of the home to you. With each instalment paid, the Bank’s share in the property diminishes while your share correspondingly increases.
The following additional features apply to all products:
All parties to the application must be owner occupiers of the property being financed.
The Bank reserves the right to change the margin on any of its products. Customers will be given at least 30 days advance notice of any changes in the pricing structure.
Terms and conditions apply. Finance is subject to status and valuation. Applicants must be between 21 and 65 years of age and be a UK resident.
Sharia'a Approval - Certificate of Endorsement - Our Home Purchase Plan has been approved by our Sharia'a Supervisory Committee.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS DUE UNDER THE LEGAL AGREEMENTS. The Home Purchase Plan facility is only available for purchases in England, Scotland and Wales.
