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Pioneering new home ownership model launched

MHO's Shariah Compliant Open Market HomeBuy model
Metropolitan Home Ownership (MHO) presented the first home buying model to help Muslims access Key Worker and other forms of affordable home ownership at the recent (November 30th 2006) launch of the London Housing Federation's.

The partnership consists of:

  • Faith Regen UK (a faith-based organisation looking to regenerate communities) and MHO believe the rest of the sector are bound to follow the lead.
  • Devonshires Solicitors
  • Alburaq, Shariah complaint financial services
  • The Housing Corporation

The successful sale completion paved the way for Open Market HomeBuy equity loans (where housing associations offer a type of interest free loan to help low income and Key Worker customers buy a home of their choice on the open market) to be made available to people previously excluded.

Although currently some lenders offer Shariah approved finance and mortgage style products - they are aimed at homes in the open market rather than affordable home ownership. Consequently they do not tend to help Muslim households on lower incomes who cannot afford to buy homes on the open market.

MHO began this pilot in 2004, with the first completion in December of the same year; with further cases going on this pilot programme, which should complete in early 2007.

Metropolitan Home Ownership (MHO)

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