Islamic home finance
With our Islamic home finance products, you pay rent not interest when you purchase or refinance a property.
Sharia compliant Islamic home finance products
Unlike conventional mortgages and refinances, Al Rayan Bank's Sharia compliant Home Purchase Plans (HPP) and our rent & acquisition Buy to Let Purchase Plans (BTLPP) do not involve interest charges and are based on joint ownership.
Your monthly payment increases your share in the property and includes a payment for the use of the share that the Bank owns. At the end of the finance term you will own the property outright.
On our rent only BTLPP each payment only covers the rent that Al Rayan Bank charges on its share of the property. However, you won't acquire any of our share of the property. Instead you will need to put in place plans to acquire Al Rayan Bank's share at the end of the finance term. Al Rayan Bank provides competitive rental rates, with finance for your property 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.
So whether you are seeking property finance in line with your faith or simply want a more principled way of buying or refinancing, Al Rayan Bank's Islamic mortgage alternatives offer the answer.
For more information on any of our products or services, please ring our Customer Services team on 0800 408 0435, or complete our online form and we'll get back to you.