Premier customers offered enhanced Home Purchase Plan to finance high-end properties
21 May 2009 – Islamic Bank of Britain (IBB, www.islamic-bank.com) today announced the launch of its Premier Banking service, available to customers in the UK and overseas.
The Premier Banking service has been designed to meet the strong demand from affluent and High Net Worth individuals looking for a more personal banking service and tailored, ethical products that can accommodate their specific financial requirements.
IBB’s Premier Banking service will provide customers of its select service with:
• A personal banking service through their own, dedicated Personal Relationship Manager
• Premier banking facilities through a dedicated office in Mayfair London
• Experienced Premier Banking staff all of whom are multi-lingual
• Access to a higher amount of property finance, starting from £250,000 and up to £5 million per client
If the customer meets one of the criteria below he/she is invited to apply for IBB Premier Banking, which is available to customers in the UK and overseas
• Minimum annual income of £100,000
• Minimum of £75,000 available funds for investment or savings purposes
• Minimum £250,000 finance for UK property through the Bank’s Home Purchase Plan (HPP), the Sharia’a compliant mortgage alternative
The Premier service is being launched with the immediate availability of an enhanced version of IBB’s flagship product, the Home Purchase Plan (HPP), a Sharia’a compliant mortgage alternative. The HPP has been tailored for IBB’s Premier Banking customers and now offers finance of up to £5 million per client enabling individuals to purchase property at the higher end of the market.
IBB is also offering Premier Banking customers who complete their HPP drawdown by 31st July 2009 the chance to be entered into a prize draw to win 12 months free rental payments, up to the value of £30,000. (Prize Draw terms and conditions apply, and are available on request).
Sultan Choudhury, Commercial Director at Islamic Bank of Britain, commented: “IBB is delighted to announce the launch of its Premier Banking service. Banking is about exceptional service and trust which IBB provides to all of its customers. In addition to this Premier Banking, customers are offered a tailored, personal service through a dedicated Personal Relationship Manager who understands their specific needs and helps to manage customers’ finances in a profitable and ethical way. Further, we have tailored our Home Purchase Plan to accommodate the needs of our more affluent clients looking for ethical home finance for properties at the higher end of the market.”
Mr Choudhury continued, “The Bank provides the assurance that its source of funds for the HPP is 100% ethical, IBB will not use any interest bearing instruments like bonds or derivatives to finance customers’ properties. It will instead use its own funds or the deposits from its customers, all managed purely on an ethical basis.”
Premier Banking customers will have access to IBB’s full range of HPPs for new and existing homeowners. Rental rates start at a competitive 3.99%1 with a low administration fee of only £299, for its fixed product.
1 Rent will be reviewed in June 2010, and will be reviewed inline with the standard product thereafter. Offer may be withdrawn at any time without notice. Subject to status. Terms and conditions apply. Your home is at risk if you do not keep up payments due under legal agreements.
Premier Banking customers can apply for IBB’s Home Purchase Plans through its website (www.islamic-bank.com), they can also apply in person at IBB’s Premiere Banking office located at 2nd Floor, Berkeley Square House, Berkeley Square, London - for appointments telephone 020 7887 1343.
The following is an example of the typical monthly payment involved in taking out IBB’s HPP under its new fixed rate of 3.99%:
The example is for information purposes only and the actual figures are likely to vary.
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Product
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Standard Fixed 3.99% until June 2010
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Value
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£150,000
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Finance
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£80,000
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Term
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25 years
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Rent payment
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£265.49
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Acquisition payment
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£156.34
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Total monthly payment
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£421.83
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Each monthly payment will consist of two elements:
Rent element– this is the amount that the customer is paying to the Bank as rent on the Bank’s share of the property. This is in accordance with an Ijara (lease) agreement.
Acquisition element - this is the amount that the customer is paying to purchase a part of the Bank’s share in the property. This is accordance with a Diminishing Musharaka (partnership) agreement.
The rent element decreases as the Bank’s share in the property decreases with each acquisition payment. Correspondingly, the customer’s equity in the property increases with every payment.
The customer can buy the Bank’s share, in part or in full, or sell the property at anytime without any penalty. The Bank does not claim any share in the appreciation of the property.
Notes: Minimum finance £70,000, maximum finance £2,500,000 per property, and £5 million per client. Minimum property value £125,000 in England and Wales, and £100,000 in Scotland. Income from up to four people can be taken into account when assessing an application. The four people must be owner occupiers of the property being financed. Islamic Bank of Britain plc uses affordability criteria in which a customer’s income and expenditure are assessed.
Ends
About Islamic Bank of Britain
Islamic Bank of Britain has pioneered Sharia’a compliant retail banking in the UK and has launched a wide range of products, including current accounts, savings accounts and personal finance. The Bank was also the first to introduce Sharia’a compliant Business banking to the UK, and now offers a wide range of institutional and business banking products and services, including commercial property finance.
Several of the Bank’s products remain unique in the UK retail market (e.g. Sharia’a compliant personal finance and Sharia’a compliant online savings accounts).
The Bank is authorised and regulated by the Financial Services Authority and meets UK banking regulations and strict safeguards for customer deposits. All products offered by the Bank are fully approved by the Bank’s Sharia’a Supervisory Committee (SSC).
Sharia’a compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks.
Whilst the Bank offers products and services that are designed in accordance with Sharia’a principles, it is an inclusive Bank and welcomes customers of all faiths.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request.
The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
ENDS
Issued by Islamic Bank of Britain, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH