Muslims living in Britain are now able to take advantage of sharia'a compliant mortgages in order to secure a place on the property ladder.
Available through the UK's first FSA (Financial Services Authority) approved Islamic bank established Sept 2004, Islamic Bank of Britain (IBB) offer a great new Home Finance plan.
In the past, the Muslim community have struggled to own property as the only type of mortgages on the market follow interest-based transactions which are forbidden by Islamic law. IBB's Home Finance plan follows the principles of partnership (Musharakah) and leasing (Ijara) which is 100% halal and fully compliant with Islamic law.
Under this scheme, homebuyers can agree a purchase price on a property with the vendor, then the bank and the customer will purchase the property together. The bank will then lease its share of the property to the customer for an agreed period of time. The customer will then be required to make monthly rental payments to the bank, for the use of the bank's share of the property. In addition to the rent, customers can also make additional repayments to buy out the bank's share in the property. Once the final payment has been received by the bank the property deeds will be transferred to the customer.