Home Purchase Plan Scotland
Pay rent not interest when you purchase or refinance your home - fixed term occupancy rate option available.
Unlike a conventional mortgage where the purchaser borrows money from a lender which is then repaid with interest, Al Rayan Bank’s Home Purchase Plan Scotland uses the Islamic finance principle of a Co-Ownership Agreement (Diminishing Musharaka) with a Sharia compliant Co-Beneficiaries Agreement.
Your monthly HPP payment is made up of two elements, an acquisition payment and an occupancy payment. When all acquisition payments have been made and the finance has been settled, full ownership of the property transfers to you.
|Discounted variable occupancy rate||Fixed occupancy rate||Finance to Value (FTV)|
|N/A||4.99%||90%||Find out more|
|3.99%||4.19%||80%||Find out more|
|3.59%||3.79%||65%||Find out more|