Home Purchase Plan - England and Wales
Islamic Bank of Britain’s Home Purchase Plan for England and Wales has been approved by the Bank’s Sharia Supervisory Committee.
If the property is in England or Wales continue reading below.
If the property is in Scotland please 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 a secure online Agreement in Principle which allows you to proceed to an online application form.
You can also click here for a FREE NO OBLIGATION QUOTATION. (Please note, you will be directed a secure server page).
England and Wales only. If the property is in Scotland please click here.
Standard Product
| Product |
FTV |
Rental Rate |
| Standard |
Up to 80% |
4.99% |
| Fixed |
Up to 70% |
3.99%* |
*Fixed until January 2012, reverting to Base rate + 3.99% thereafter.
- Admin Fee of £299
- Standard products available for new purchase, refinancing and releasing additional capital. IBB will pay own legal Fees up to £400
- Rental Rate = Base Rate + Bank’s Margin
- The Bank reserves the right to change the margin on its product. The maximum increase in the margin will be 2% over the initial margin that applied at the outset. Customers will be given at least 30 days advance notice of any changes in the pricing structure.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS DUE UNDER THE LEGAL AGREEMENTS