Islamic Mortgages

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Purely Islamic banking with a personal touch

Your personal wealth management options represent a world of opportunity, guided by essential
Islamic values.

We have a selection of mortgages, investments, pensions and savings, all tailored to your personal needs and financial goals. And all offered with supreme confidence that every option will always be purely Halal.

Home Purchase Plan
Mortgage Calculator
Mortgage Advice
Home Purchase Plan

Do you need Islamic Investment Mortgages Pensions and Savings advice?
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WHAT OUR CUSTOMERS SAY

Islamic Wealth Management has been looking after Al Rayan Bank  customers for a number of years. As Independent Financial Advisor’s they have consistently provided excellent customer service and expert financial advice in a completely Sharia compliant manner. It’s with pleasure to recommend Islamic Wealth Management as the go to services for Independent Islamic Financial Advice.

Imran Pasha – Al Rayan Bank plc

Your guide to the Home Purchase Plan (HPP).

A Simple Islamic Mortgage Plan

An Islamic Mortgage is an alternative to the conventional Western option, where as a purchaser, you borrow money from a lender and repay it with interest. With a Sharia-compliant Home Purchase Plan, you can be assured your mortgage is based upon the Islamic finance principles of a Co-ownership Agreement (Diminishing Musharaka) with leasing (Liara).

Essentially, you pay two monthly payments to the bank – one is a rental payment, the other is to pay off the bank’s share of your home. Over time, you own more and more of your home until it’s totally yours, and you don’t pay or receive any interest (riba), which is forbidden under Sharia law. At Islamic Wealth Management, we work in partnership with the Al Rayan Bank to offer Sharia-compliant mortgages to a number of valued clients all across the UK.

The benefits of a Islamic Personal Pension

    • Borrowing based on the principles of Co-ownership (Diminishing Musharaka) with leasing (Liara)
    • No interest (riba) paid or received, so it’s Sharia-compliant
    • Own more and more of your home over time, until it’s totally yours
    • Our mortgage experts will help you find the right Home Purchase Plan for you
    • Keep track of your mortgage account 24/7 online, or by phone

For expert help and guidance on personal wealth management, please just call us on 01706 875 459 and we’ll take you through all your options.

Mortgage Calculator

Do you need Islamic Investment Mortgages Pensions and Savings advice?

Contact Us Now

LET US CONTACT YOU?

Complete the form below and we will come back to you by email or at a time that is convenient for you

WHAT OUR CUSTOMERS SAY

Islamic Wealth Management has been looking after Islamic Bank of Britain's customers for a number of years. As Independent Financial Advisor's they have consistently provided excellent customer service and expert financial advice in a completely Sharia compliant manner. It's with pleasure to recommend Islamic Wealth Management as the go to services for Independent Islamic Financial Advice.

Imran Pasha - Islamic Bank of Britain plc

The Islamic Mortgage IBB Calculator.

A quick & easy way to find out how much you could borrow.

An Islamic Mortgage represents a fairer way to borrow the money to buy your home, and you can be assured that all your borrowing is strictly Halal, and therefore safely Sharia-compliant.

To see how much you could borrow and what your monthly repayments are likely to be, please just follow this link to the Islamic Bank Of Britain Mortgage Calculator

Mortgage Advice

Do you need Islamic Investment Mortgages Pensions and Savings advice?

Contact Us Now

LET US CONTACT YOU?

Complete the form below and we will come back to you by email or at a time that is convenient for you

WHAT OUR CUSTOMERS SAY

Islamic Wealth Management has been looking after Al Rayan Bank’s customers for a number of years. As Independent Financial Advisor’s they have consistently provided excellent customer service and expert financial advice in a completely Sharia compliant manner. It’s with pleasure to recommend Islamic Wealth Management as the go to services for Independent Islamic Financial Advice.

Imran Pasha – Al Rayan Bank plc

Frequently asked Questions

“We are regularly asked questions about the Bank, our products and Islamic finance in general. Here are some of the questions that are most commonly put to us.

Islamic Banking

How does Islamic banking work?

The basis for all Islamic finance lies in the principles of the Sharia, or Islamic Law, which is taken from the Qur’an and from the example of Prophet Muhammad (peace be upon him).

Islamic banking operates without interest which is not permitted in Islam, as money in itself is not considered to have intrinsic value. As interest is income generated from money, it is seen as effortless return. Instead money must be used in a productive way and wealth can only be generated through legitimate trade and investment, which involves an element of risk.

Islamic banking therefore uses various principles recognised as Sharia compliant such as Ijara (leasing), Musharaka (partnership) and Wakala (agency agreement). Islamic banks use these principles to develop Sharia compliant financial products, such as savings accounts and home finance, which allow Muslims to conduct their finances in an Islamic way.

Sharia Compliance

How does IBB ensure its activities are Sharia compliant?

By following Islamic finance principles laid down in Sharia, Islamic law. To ensure the rules are followed as closely as possible, IBB has a Sharia Compliance Officer (SCO) and a separate independent body called the Sharia Supervisory Committee (SSC).

The SSC is comprised of Islamic scholars and experts in the interpretation of Islamic law and its application within modern day Islamic financial institutions. The SCO is also trained to the highest standards, set down by The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). It is recognised as the highest Sharia compliance standard in the Islamic finance industry. The combined works of the SCO and the SSC ensure that both the IBB’s products and its activities comply with Islamic rules at all times.

Home Finance

If I buy a home with a HPP, I will be charged rental and not interest. Can you explain how an IBB HPP works?

IBB has developed the Home Purchase Plan as a Sharia compliant alternative to a mortgage. The principle difference between a HPP and a conventional mortgage is that the lending/borrowing relationship does not exist. For this reason interest does not form part of the arrangement.

As a Sharia compliant product, IBB’s HPPs are based on joint ownership and lease agreements arranged using two separate principles of Islamic finance:

With a HPP, of say 20 years, IBB and the customer buy the property jointly. The customer then has 20 years to buy the Bank’s share for the same initial purchase price. This is based on the Diminishing Musharaka (diminishing partnership) principle of Islamic finance.
At the time of completing the joint purchase, the customer will live in the property even though a large share of it is owned by the Bank. Therefore, until the customer becomes the full owner, they will lease the portion of the property still owned by IBB and pay a monthly rental to the Bank. This is based on the Islamic financing principles of Ijara (leasing).
When all acquisition payments have been made and the finance has been settled, ownership of the property transfers fully to the customer and they now own their home outright, without having paid any interest.

It is also important to note that the money IBB uses to buy homes jointly with its customers is from Sharia compliant sources. The Bank does not use any interest-bearing products to finance customer’s homes. Instead it uses its own funds, or the savings deposits from its customers, creating a virtuous circle for everyone involved.

Interest

Under the principles of Sharia, the presence of interest creates an inequitable relationship between two parties favouring one over the other; this imbalance can ultimately lead to wider negative social and economic implications, as has been seen in recent years with several major global banks failing. This is why it is forbidden in the Qur’an as generating money from money is effortless and useless approach of making money, it instead encourages trade and investment.

Al Rayan Bank

As the UK’s only wholly Sharia compliant retail bank, IBB offers consumers a different approach to banking. Over the last decade, IBB has helped thousands of UK Muslims undertake their day-to-day banking requirements without compromising the principles of their faith.

Call Us Now:01706 875 459

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