Home Purchase Plan

Sharia compliant mortgage alternatives for customers able to contribute at least 20% of the property's value as a deposit.

95%Finance to value

Up to 95% finance to value

Fixed 4.99%

  • Rental rate fixed until 30 September 2022
  • From 1 October 2022 reverts to Al Rayan Bank Variable Rental Rate which for HPP = 4.74% (Bank of England Base Rate + 3.99% margin)
  • Administration fee of £999

Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.

Procuration fees

For referred cases, Al Rayan Bank will pay a procuration fee upon completion of:

Home Purchase Plan 0.35% (gross)
Buy To Let Purchase Plan 0.50% (gross)

To register contact us online or by calling 0800 694 7238

Key features

  General information
Finance amount: Up to £400,000 
Minimum property value: £80,000
Term: 7 - 35 years
Maximum number of applicants: Up to two applicants (all applicants must be owner occupier)

Administration fee - £999

Valuation and legal fees: Paid by the applicant(s).

Al Rayan Bank has created a panel of solicitors who are experienced in the Islamic finance conveyancing process. If you choose to proceed with one of our panel solicitors, Al Rayan Bank will make a £400 (including VAT) contribution towards the Al Rayan Bank legal costs. However, customers are not obliged to use one of our panel solicitors. For more information, please refer to the HPP Tariff List.

Minimum age of applicants: 18 years

Rent reviews

Fixed product

  • The fixed rental rate will end on 30 September 2022
  • The new rental rate will be effective from 1 October 2022
  • Rental rate will be reviewed quarterly thereafter
  • No additional acquisition payments are permitted during the fixed rental period
  • Following the expiry of the fixed rental rate, additional acquisition payments can be made in the month of each rent review 


  • The Bank reserves the right to change the margin on its products however a cap applies of 2% 
  • Therefore Al Rayan Bank cannot increase the margin on its HPP products by more than 2% over the margin that applied at the outset
  • Al Rayan Bank cannot change its margin whilst a fixed rent rate applies
  • You will be given at least 30 days advance notice of any changes in the pricing structure


  • The customer has the option to sell the property at any time without any penalties (subject to an administration fee to cover any costs)

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