Home Purchase Plan
Pay rent not interest with our Sharia compliant mortgage alternatives.
Unlike a conventional mortgage where the purchaser borrows money from a lender which is then repaid with interest, Al Rayan Bank's Sharia compliant Islamic mortgage alternatives (Home Purchase Plans or HPP) are based upon the Islamic finance principles of a Co-Ownership Agreement (Diminishing Musharaka) with Leasing (Ijara).
Your monthly HPP payment is made up of two elements, an acquisition payment and a rental payment. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to you.
Our HPP mortgage alternatives are not exclusively for Muslims, Al Rayan Bank provides competitive rental rates which are attractive to everybody. Finance for your property is generated from ethical activities considered lawful under Sharia. Our administration fees are low and there are no early settlement penalties, giving you flexibility with your finances.
For more information please call 0800 408 0435 and speak to a member of our team, or complete our online form and we'll get back to you.
|Discounted variable||Fixed||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|