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Islamic Home Finance: Your Standout Choice for Halal Mortgage Solutions in the UK

Writer's picture: Stephen MartinStephen Martin

Are you searching for a truly ethical and Sharia-compliant way to finance your dream home in the UK? Look no further than Islamic Home Finance – your premier destination for Islamic halal mortgage solutions. We have access to leading halal finance options in the UK. Acquisition & Rent Purchase Plan is a unique arrangement designed to align with your values while helping you achieve your homeownership goals.


Understanding the Acquisition & Rent Purchase Plan: At Islamic Home Finance, our access to Acquisition & Rent Purchase Plan stands out as a groundbreaking approach to financing residential properties. This product presents a partnership between the applicant and the bank, creating a mutually beneficial arrangement that adheres to Islamic principles.


How It Works: In this plan, both the applicant and the bank contribute a percentage towards the purchase or refinance of a residential property. For instance, the bank may contribute 75% while the applicant contributes 25% of the purchase price. In the case of refinances, the applicant's contribution is based on the equity in the property.


The bank leases its share of the property to the applicant throughout the finance term. As the term progresses, the applicant makes monthly Acquisition Payments. These payments facilitate the gradual transfer of ownership from the bank to the applicant. With each payment, the bank's ownership share diminishes while the applicant's share increases.

While the Acquisition Payments are being made, the bank charges the applicant rent for the usage of its portion of the property. The calculation of rent is based on the respective ownership shares.


Flexible Options for Ownership: Islamic Home Finance provides flexible ownership options to suit your needs. You can choose to acquire the bank's share before the end of the finance term by making Additional Acquisition Payments (AAPs). Alternatively, you can opt to reduce your monthly Acquisition Payments and acquire the bank's share at the original term's conclusion.

It's important to note that there might be an Early Redemption Charge (ERC) if the bank's share is fully acquired or if AAPs exceeding the 10% annual allowance are made during the Fixed Rental Rate Period.


Seamless Ownership Transfer: Once you've successfully acquired the bank's entire share, whether at the end of the agreed term or through early purchase, the bank will transfer the registered ownership title of the property to you. This final step ensures that you gain complete ownership and control of your dream home.


Additional Information:

  • On settlement of the finance, an Account Settlement Fee is payable in accordance with the Bank’s standard Tariff of Charges to cover administrative costs.

  • Customers are responsible for their own solicitor costs, stamp duty, and other conveyancing charges, such as land registry fees, both at the outset and on settlement.

Islamic Home Finance's Acquisition & Rent Purchase Plan offers you a truly ethical and Sharia-compliant path to homeownership in the UK. With its unique structure that aligns with Islamic principles and flexible ownership options, this plan makes us the standout choice for Islamic halal mortgage finance. Join us today and take the first step toward owning your dream home while upholding your values.

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Islamic Home Finance is a trading style of The Introducing Broker Finance Hub Ltd

Unit 4 Cumbrian House, 217 Marsh Wall, Canary Wharf, London, E14 9FJ

Telephone: 020 3962 5000

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Privacy Notice              Cookie Policy               Accessibility Statement

 

Islamic Home Finance is a trading name of The Introducing Broker Finance Hub Ltd which is Authorised and regulated by the Financial Conduct Authority 1015383. You can visit The FCA Register by clicking here. 

 

The FCA does not regulate business buy to lets and commercial mortgages to limited companies. Registered in England ( Co. No. 08893575) with registered office at 39 High Street, Orpington, BR6 0JE and trading address of Unit 4 Cumbrian House, 217 Marsh Wall, Canary Wharf, London, E14 9FJ. 

We always aim to provide a high quality service to all our clients. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent ombudsman. You can visit the Ombudsman website by clicking here

Please make borrowing decisions carefully, your home or property may be repossessed if you cannot keep up agreed repayments on any loan or mortgage secured on that property.

 

As with all insurances, conditions and exclusions will apply. We are a credit broker, not a lender.

 

There will be a fee for mortgage advice. Our fee structure ranges from £495 – £1495 depending on individual circumstances and lending scenario, please request a terms of business for full details. However, we will discuss and agree a fee with you prior to submitting any application. 

Our privacy notice provides information on how we and any of our subsidiaries, and any 3rd party providers collect, use, secure, transfer and share your information. Islamic Home Finance is a mortgage and insurance intermediary firm and we will collect information directly from you. We are required to enter your details onto our mortgage network systems. Details of their privacy notice can be found at www.tibfinancehub.com

 

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

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