Home Purchase Plan

Pay rent not interest with our Sharia compliant mortgage alternatives.

YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN

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
Admin
fee
Available to  
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.

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