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 HPPs) are based upon the Islamic finance principles of a co-ownership (Diminishing Musharaka) and leasing* (Ijara*).
View our complete range of Home Purchase Plans
|Finance to value||Fixed rental rate||Discounted
variable rental rate
|60%||2.94%||3.14%||£399||All customers||View details|
|70%||3.04%||3.24%||£399||All customers||View details|
|80%||3.24%||3.44%||£399||All customers||View details|
|60% (fees assisted)
||3.09%||3.29%||£0||Refinance only||View details|
|70% (fees assisted)
||3.19%||3.39%||£0||Refinance only||View details|
|80% (fees assisted)||3.39%||3.59%||£0||Refinance only||View details|
Your monthly payment is made up of two elements, an acquisition payment which increases your share of the property and a rental payment for use of the portion that the Bank still owns. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to you.
*Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.