Home Purchase Plan
The customer and Bank purchase the property together; over time the customer acquires the Bank's share, paying rent on the portion they do not yet own.
Al Rayan Bank's Sharia compliant Islamic mortgage alternatives (Home Purchase Plans or HPPs) are based upon the Islamic finance principles of co-ownership (Diminishing Musharaka) and leasing (Ijara).
View our complete range of Home Purchase Plans
|Finance to value||Discounted
variable rental rate
|Fixed rental rate||Admin
|60%||2.89%||3.19%||£399||All customers||View details|
|70%||2.99%||3.29%||£399||All customers||View details|
|80%||3.19%||3.49%||£399||All customers||View details|
|90%||-||4.49%||£999||All customers||View details|
|95%||-||4.99%||£999||All customers||View details|
|60% (fees assisted)||3.04%||3.34%||£0||Refinance only||View details|
|70% (fees assisted)||3.14%||3.44%||£0||Refinance only||View details|
|80% (fees assisted)||3.34%||3.64%||£0||Refinance only||View details|
A customer's monthly payment is made up of two elements, an acquisition payment which increases their share of the property and a rental payment for use of the portion that the Bank still owns. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to customer.
*Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.
|Intermediaries can find out more by accessing Al Rayan Bank’s dedicated intermediary support service, which can be contacted on 0800 694 7238. Upon registration, Intermediaries will be able to introduce business to Al Rayan Bank by referral, i.e. the provision of customer contact details.|