Islamic Bank of Britain is pleased to present the Home Purchase Plan for Scotland. Islamic Bank of Britain’s Home Purchase Plan has been approved by the Bank’s Sharia Supervisory Committee. It is available to customers of all faiths as an alternative to a conventional mortgage.
How does it work?
The Home Purchase Plan is based on the accepted and widely used Islamic financing principles of Diminishing Musharaka (reducing partnership) and Ijara
(Co-Beneficiaries agreement).
For example, the bank may contribute 80% and the customer 20% of the purchase price. Over a period of up to 30 years, the customer will make monthly purchase instalments made up of:
1. An occupancy payment (this is similar to rent) and is paid to the bank for its share of the property.
2. A monthly purchase instalment through which the Bank will sell its share (80%) of the property to the customer. With each instalment paid, the Bank’s share in the property diminishes while the customer's share correspondingly increases.
| Product |
FTV |
Occupancy Payment Rate |
Admin Fee |
Monthly Payments |
| Standard |
Up to 80% |
4.49%
|
£299 |
Calculate |
| Fixed* |
Up to 80% |
4.19%
|
£299 |
Calculate |
*Fixed until December 2013, reverting to base rate + 3.99% thereafter.
- Standard product available for new purchase, refinancing and releasing additional capital. IBB will pay its own legal fees up to £400 (inc VAT)
- Occupancy Payment Rate = Base Rate + Bank’s Margin
- The Bank reserves the right to change the Margin of its product. The maximum increase in the Margin will be 2% above the initial Margin that applied at the outset. The bank cannot change its margin whilst a fixed rate applies. Customers will be given at least 30 days advance notice of any changes in the pricing structure.
Scotland Only If the property is England or Wales click here.