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Islamic Bank of Britain Home Purchase plan

19/06/2011 07:42:00 PM GMT   Comments ()     Add a comment   Print     E-mail to friend
Islamic Bank of Britain offers Sharia compliant financing products

Currently IBB offers different conditions for people planning to buy homes in England, Wales or Scotland. The basic principle behind the Home Purchase Plan is that of Ijarah or Islamic leasing and Diminishing Musharaka.  

The Diminishing Musharaka model adopted by the bank means the bank will start with a pre-decided ratio of funding for your home, say 60% and the rest of 40% will be paid by the customer. As the time passes the customer will pay a certain amount after scheduled time and the stake of the bank will reduce gradually, eventually offering complete ownership to the customer.

Currently the bank offers two types of product options, standard and fixed. In the standard option the FTV is up to 80% and rental rate is 4.99%. In fixed product option, the FTV is up to 70% and rental rate is 3.99%. The other conditions are:

·         A set admin fee of £299 will be charged.

·         Standard products available for new purchase, refinancing and releasing additional capital. IBB will pay own legal Fees up to £400

·         Rental Rate = Base Rate + Bank’s Margin

·         The Bank reserves the right to change the margin on its product. The maximum increase in the margin will be 2% over the initial margin that applied at the outset.  Customers will be given at least 30 days advance notice of any changes in the pricing structure. 

For more details visit:

Source: Al Arabiya Digital

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