Legal & General partners with Islamic Bank
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Legal and General and Islamic Bank of Britain have announced a partnership that sees IBB’s Islamic mortgage product, the Home Purchase Plan, available from Legal & General.
The news closely follows IBB’s announcement of a £20m capital injection from founding shareholder, Qatar International Islamic Bank.
With IBB now available from Legal & General, the Bank’s full range of Sharia compliant HPP is available to all the Club’s intermediaries.
IBB’s Home Purchase Plan is a mortgage alternative which offers home finance without the use of interest. The HPP allows customers to purchase their home in partnership with the Bank on a leasing (Ijara)and diminishing partnership (Musharaka) agreement. Rental rates start at 3.99% and all products carry a low arrangement fee of £299.
Sultan Choudhury, commercial director at IBB, says: “There is a growing demand amongst UK home-buyers for competitive, Sharia compliant home finance as an alternative to conventional mortgages. This partnership between Legal & General and IBB gives mortgage club intermediaries access to a wider choice of products, an additional revenue stream and the ability to extend their offering across a diverse range of communities.
“Working with Legal & General marks a significant step forward for the Bank’s plans to expand its reach.”
Martyn Smith, head of mortgage products at Legal & General, says “This relationship between IBB and Legal & General gives our brokers the opportunity to tap in to more potential customers and gain a real competitive edge. We pride ourselves on being ahead of the game by offering competitive and innovative products. We welcome IBB and look forward to a mutually beneficial partnership.”
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