loader

Home Purchase Plan

A home purchase plan is a Shariah-compliant mortgage alternative. You can use it just like a conventional mortgage to buy or refinance your home

How does my Home Purchase Plan work?

Your home purchase plan works in a similar way to a mortgage. Fixed and variable rates may be available, except they are not rates of interest but rental rates. With a Shariah compliant home purchase plan, you buy the property jointly with your chosen finance partner. Your deposit is your stake, The bank holds the remaining stake and the property is registered in the Banks name. Your monthly payment is made up of either rent if you have a rent-only agreement, or rent and acquisition if you have an acquisition and rent agreement. Rental rates are calculated to reflect the shares you and we own in the property.

 

  • Acquisition and Rent product – This is the Shariah compliant alternative to a conventional repayment (capital & interest) mortgage. Over the agreed finance term, you make a monthly payment consisting of a rental payment (for use of our share of the property) and an acquisition payments (to increase your share in the property). With each acquisition payment, your share increases, and ours diminishes. The makeup of your monthly payment changes over time. As our share of the property gets smaller, so does the rental portion of your payment, so more and more of the monthly payment goes towards the acquisition of our share. When all the payments are made, the property transfers into your name.

 

  • Rent Only product – This is the Shariah compliant alternative to a conventional interest-only mortgage. Over the agreed finance term, you make monthly rental payments (for use of our share of the property), but no acquisition payments, so your share doesn’t go up just by making your monthly payments. You undertake to acquire our share of the property at the end of the finance term. If you have a rent-only product, it’s your responsibility to look after any financial arrangements that you expect will provide a lump sum big enough for you to buy our share at the end of the product. When our entire share is acquired, the property transfers into your name

With both types of products, you can sell the property at any time, just like you can with a conventional mortgage. There are no early payment charges, but there is an account settlement fee. When you sell, you only have to pay the original cost of the property contributed by the bank, less any acquisition payments you may have made. Any increase in the property value benefits you, not us, but just like with a conventional mortgage, a decrease in value also affects

Can I get finance before I have found my property?

We can provide a decision in principle (DIP) which shows how much finance the Bank would be willing to provide in principle, based on the how much finance you’re looking for and how much you are willing to contribute to the purchase.

Buy to Let Purchase Plan

A buy-to-let purchase plan is a Shariah compliant mortgage alternative. You can use it just like a conventional mortgage to buy or refinance your buy-to-let property.

Do you cater for both landlords and individual businesses?

Yes. We can provide buy-to-let finance for individuals, and also sole proprietors, partnerships, limited companies and on- or off-shore SPV (special purpose vehicle) structures. Are products available for UK Expats and International residents based overseas, as well as UK residents? Yes. Having both an inclusive and flexible approach, we have specific products to help meet the needs of both UK Expats and International residents based overseas.

Commercial Property Finance

If Interest isn’t charged how does CPF work in practise?

Under Shariah finance principles, money must be put to a good use to generate profit supported by genuine trade or a business related activity. As such, the giving or receiving of interest (making ‘money from money’) is prohibited. For commercial property finance we use a shariah compliant financial arrangement which is known as ‘Commodity Murabaha’. The Bank organises all the necessary paperwork involved with the transaction, which is overseen by Solicitors. As part of the arrangement, profit is generated, which is the agreed margin that the Bank makes on the transaction.

why choose us

Why People Trust Consultab for Consulting

There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration.

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

  • Advance Advisory Team
  • Professional Consulting Services
  • 24/7 Support Help Center
  • Advance Advisory Team

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

  • Advance Advisory Team
  • Professional Consulting Services
  • 24/7 Support Help Center
  • Advance Advisory Team
Our Services

We Provide Professional Consulting Services.

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it.

Our Testimonial

Our Client's Feedback