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 (Diminishing Musharaka) and leasing (Ijara).
Your monthly Home Purchase Plan 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 halal 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 on Home Purchase Plans, please call 0800 4080 435 and speak to a member of our team, or complete our online form and we'll get back to you.
|Finance to value (FTV)||Fixed||Discounted Variable|
|60%||2.44%||2.64%||Find out more|
|70%||2.54%||2.74%||Find out more|
|80%||2.74%||2.94%||Find out more|
|90%||3.69%||Not available||Find out more|