Islamic Bank launches Home Purchase Plan

14 July 2008

The Islamic Bank of Britain has unveiled a Home Purchase Plan to enable customers to purchase their homes in a Sharia compliant manner.

The plan is based on the Islamic principles of Ijara (leasing) and Diminishing Musharaka (partnership).

Under this arrangement, clients and IBB will both contribute towards the purchase of the home and become partners. During the agreed period, customers will make monthly payments to buy the bank's share.

Sultan Choudhury, commercial director of IBB, says: "Open to all faiths, the HPP offers clients an alternative to conventional interest-based mortgages."

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