Home Purchase Plan - Scotland
Islamic Bank of Britain’s Home Purchase Plan in Scotland has been approved by the Bank’s Sharia Supervisory Committee. It is available to customers of all faiths as an alternative to a conventional mortgage.
If the property is in Scotland continue reading below.
If the property is in England or Wales click here.
How does it work?
The Home Purchase Plan is based on the accepted and widely used Islamic financing principles of Ijara (leasing) and Diminishing Musharaka (reducing partnership).
For example, the bank may contribute 60% and you 40% of the purchase price. Over a period of up to 30 years, you will make monthly purchase instalments through which the Bank will sell its share (60%) of the home to you. With each instalment paid, the Bank’s share in the property diminishes while your share correspondingly increases.
The key features are listed below, with calculators available here, as well as secure online Agreement in Principle which allows you to proceed to an online application form.
Standard Product
| Product |
FTV |
Occupancy Payment Rate |
| Standard |
Up to 80% |
4.49% |
| Fixed |
Up to 80% |
4.19%* |
*Fixed until December 2013, reverting to base rate + 3.99% thereafter.
- Admin Fee of £299
- Standard product available for new purchase, refinancing and releasing additional capital. IBB will pay own legal Fees up to £400
- Occupancy Payment Rate = Base Rate + Bank’s Margin
- The Bank reserves the right to change the Margin of its product. The maximum increase in the margin wil be 2% above the initial margin that applied at the outset. The bank cannot change its margin whilst a fixed rate applies. Customers will be given at least 30 days advance notice of any changes in the pricing structure.
Scotland Only. If the property is in England or Wales click here.
Sharia Approval - Certificate of Endorsement
Our Home Purchase Plan has been approved by our Sharia Supervisory Committee.
Certificate of Sharia Compliance for Home Purchase Plan (Scotland)
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN
The Home Purchase Plan facility is only available for purchases in England, Scotland and Wales.