IBB launches the Home Purchase Plan

Key Features:

• 80% maximum finance to value
• Rent Rate: standard 6.95% and fees assisted  7.35% (at current prices)
• Term is 7 years to 30 years
• Available for new purchases, refinancing and releasing additional capital in England and Wales
• Minimum age of applicants is 21 years and maximum age is 65 years

Additional info:

• There is a minimum collar rate for all our products at 5.95%. This means the minimum rent will be 5.95% regardless if the Bank of England base rate goes lower.
• 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.  Fees assisted product: Bank will pay the standard valuation fees. See Tariff List.
• If you decide to settle your Home Purchase Plan during the first 5 years you will be required to repay to the Bank the full cost of the solicitors and valuation fees incurred.  The four people must be owner occupiers of the property being financed.

Comment:

'This is well over due and we congratulate the IBB for bringing these products onto the market.  The rental rates being offered bring these products in line with other Islamic mortgage lenders.'

'However, I believe the IBB was in very unique position of offering a much more competitive product then this to the market; which would have been a real alternative to the conventional market.  Although, we are a little disappointed, we believe that there is ample scope in the future to provide a level playing field with the conventional market.'

Nusrat Janjua, Marketing Director, IslamicMortgages.co.uk