Home Purchase Plan Scotland
Pay rent not interest when you purchase or refinance your home - fixed term occupancy rate option available
Sharia compliant, flexible, affordable finance
Unlike a conventional mortgage where the purchaser borrows money from a lender which is then repaid with interest, the HPP in Scotland uses the Islamic finance principles of a Co-Ownership Agreement (Diminishing Musharaka) with a Co-Beneficiaries Agreement.
Your monthly HPP payment is made up of two elements, an acquisition payment and an occupancy payment. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to you.
For more information please call 0800 4087 786 and speak to a member of our team, or complete our online form and we'll get back to you.
Up to 80% finance to value
Discounted Variable 3.99%
- Occupancy payment rate discounted until 30th June 2015
- Discounted from IBB Home Finance Occupancy Payment Rate of 4.49%. Occupancy payment rate = Base rate + 3.99% margin.
- Administration fee of £399
Fixed 4.19%
- Occupancy payment rate fixed until 30th June 2015
- From 1st July reverts to IBB Home Finance Occupancy Payment Rate of 4.49%. Occupancy payment rate = Base rate + 3.99% margin.
- Administration fee of £399
Up to 65% finance to value
Discounted Variable 3.59%
- Occupancy payment rate discounted until 30th June 2015
- Discounted from IBB Home Finance Occupancy Payment Rate of 4.49%. Occupancy rate = Base rate + 3.99% margin.
- Administration fee of £399
Fixed 3.79%
- Occupancy payment rate fixed until 30th June 2015
- From 1st July reverts to IBB Home Finance Occupancy Payment Rate of 4.49%. Occupancy payment rate = Base rate + 3.99% margin.
- Administration fee of £399
All products are available for new purchases, refinancing and releasing additional capital.
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN
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General information
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Finance amount
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- £30,000 to £750,000 (higher amounts may be considered)
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Minimum property
value
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Term
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Maximum number of applicants
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- Up to four applicants
- One of which must be an owner occupier of the property being financed
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Fees
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- Administration fee - £399
- Valuation and legal fees: Paid by the applicant(s).
- IBB will pay up to £400 (inclusive of VAT) towards the costs of our own solicitor's fees
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Minimum age of applicants
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Occupancy payment reviews
Fixed product
- The fixed occupancy payment rate will end 30th June 2015
- The new occupancy payment rate will be effective from 1st July 2015
- Occupancy payment rates will be reviewed quarterly thereafter in line with our standard product
- No additional acquisition payments are permitted during the fixed period
- Additional acquisition payments can be made in the month prior to each rent review
Discounted Variable
- The discounted occupancy payment rate will end 30th June 2015
- The new occupancy payment rate will be effective from 1st July 2015
- There will be four occupancy payment reviews a year in March, June, September and December
- New occupancy payment rate effective from 1st April, 1st July, 1st October and 1st January
- Additional acquisition payments can be made in the month prior to each occupancy payment review
- Minimum £4,000 with a £25 administration fee
Margin
- The Bank reserves the right to change the margin on its products however a cap applies of 2%
- Therefore IBB cannot increase the margin on its HPP products by more than 2% over the margin that applied at the outset
- IBB cannot change its margin whilst a fixed occupancy payment rate applies
- You will be given at least 30 days' advance notice of any changes in the pricing structure
Settlement
- The customer has the option to sell the property at any time without any penalties (subject to an administration fee to cover any costs)
There are a number of ways to apply for a HPP or to request more information:
Phone
- Please ring our HPP Specialist Sales team on 0800 4087 786 (Mon - Fri 9am - 7pm, Sat 9am - 1pm)
Online
Branches
- You can visit one of our branches or agencies that are located throughout the UK.
For your own benefit and protection, you should carefully read the important information we have prepared, before you complete the application. These documents can be found in the Forms & leaflets section.
To view PDFs you need the Adobe Acrobat Reader. This program is available free of charge from the Adobe website.
Further information
The following important information leaflets should be read:
To view PDFs you need the Adobe Acrobat Reader. This program is available free of charge from the Adobe website.