Banks join forces to offer Islamic B2L mortgage

Bristol & West and ABC International Bank have launched a buy-to-let mortgage for the country’s two million Muslims.

This is the latest in a range of home finance products offered by the two banks, designed specifically to comply with Sharia, Islamic law.

While the product’s structure differs from conventional interest-based mortgages to ensure compliance with Sharia law, it is accessible and competitive as its criteria is similar to B&W’s conventional buy-to-let mortgage range.

Alison Pallett, head of consumer lending at B&W, says: “Until recently Britain’s Muslims have not had a real choice in how they invest their money in keeping with their faith. Our Muslim customers have a particular interest in owning property and by offering a buy-to-let product which complies with Islamic law we’ll be opening up many more possibilities for them.”

The partnership between the two banks aims to provide customers with a combination of ABC’s expertise in Islamic banking and Bristol & West’s experience in the UK mortgage market.

The product is devised, guided and marketed by ABC through its London subsidiary, while Bristol & West provides all product support, process expertise and financial resources.

Lloyds TSB is offering Alburaq Islamic Home Finance in a growing number of branches, as part of an Islamic financial services pilot. The bank is also offering an Islamic current account.

Paul Sherrin, head of Islamic Financial Services at Lloyds TSB, says: “Lloyds TSB has established itself as one of the main high street providers of banking services for Muslims, with its Islamic current account and Alburaq’s home finance.

“We’ve fulfilled a need for these services but with the addition of buy-to-let mortgages from these two banks, we’ll be able to cater for even more customers.”