Sharia compliant home finance
The temporary cut in stamp duty announced by Chancellor Rishi Sunak appears to have had an immediate and positive effect on the housing market. The number of sales agreed within just five days of the announcement rose by 35 percent on the same period last year.
If you want to be part of the mini-housing boom and take your first step on the property ladder, you can find out more about our low deposit Home Purchase Plans (HPP) below. If you’re already in your perfect home, you needn’t miss out as we have a range of products which make it easy to move your home finance to us by reducing the costs normally associated with moving home finance.
If you’re an existing homeowner that would like to transfer from your current home finance provider to Al Rayan Bank, you may be interested in finding out more about our Fees Assisted Home Purchase Plan range.
It’s called a ‘Fees Assisted’ Home Purchase Plan because Al Rayan Bank will help you with some of the refinance costs, and you could benefit from £300 cashback and up to £600 contribution towards valuation fees. In addition, Al Rayan Bank will waive the £499 administration fee.
To find out more about our Fees Assisted HPPs please click here.
How does a Home Purchase Plan work?
Sharia-compliant home finance provides an alternative financing structure to allow Muslim customers to buy their homes without the use of interest.
Home Purchase Plans are based upon the Islamic finance principles of co-ownership (diminishing musharaka) and leasing (Ijara). Unlike a conventional mortgage, customers can refinance their property as a partner with Al Rayan Bank and pay rent on the share that the Bank owns. Each monthly payment increases the customer’s share in the property and at the end of the finance term, they will own their home outright without interest being involved in the transaction.
Our Head of Sharia Compliance and Product Development, Dr Samir Alamad, has prepared a short video to show how Home Purchase Plans work. You can watch it here.