Home Purchase Plan

The customer and Bank purchase the property together; over time the customer acquires the Bank's share, paying rent on the portion they do not yet own.

Al Rayan Bank's Sharia compliant Islamic mortgage alternatives (Home Purchase Plans or HPPs) are based upon the Islamic finance principles of co-ownership (Diminishing Musharaka) and leasing (Ijara).

View our complete range of Home Purchase Plans

Finance to value Discounted
variable rental rate
Fixed rental rate Admin
Available to  
60% 3.14% 3.44% £399 All customers View details
70% 3.24% 3.54% £399 All customers View details
80% 3.44% 3.74% £399 All customers View details
90% - 4.49% £999 All customers View details
95% - 4.99% £999 All customers View details
60% (fees assisted) 3.29% 3.59% £0 Refinance only View details
70% (fees assisted) 3.39% 3.69% £0 Refinance only View details
80% (fees assisted) 3.59% 3.89% £0 Refinance only View details

A customer's monthly payment is made up of two elements, an acquisition payment which increases their share of the property and a rental payment for use of the portion that the Bank still owns. When all acquisition payments have been made and the finance has been settled, ownership of the property transfers to customer.

*Home Purchase Plan customers in Scotland pay an 'occupancy payment' under a 'co-beneficiaries' agreement.

Intermediaries can find out more by accessing Al Rayan Bank’s dedicated intermediary support service, which can be contacted on 0800 694 7238.  Upon registration, Intermediaries will be able to introduce business to Al Rayan Bank by referral, i.e. the provision of customer contact details.

You might also be interested in...