Bristol & West and ABC International Bank plc have launched a buy-to-let mortgage for the UK’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 Islamic law (Shariah).
While the product’s structure differs from conventional interest based mortgages to ensure compliance with Shariah law, the product is accessible and competitive as its criteria is similar to Bristol & West’s conventional buy to-let mortgage range.
Alison Pallett, head of consumer lending at Bristol & West, said: “Until recently Britain’s Muslims have not had a real choice in how they invest their money in keeping with their faith. We have found that 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 alburaq range of home finance products is available either directly or through selected IFA’s and is also available through selected branches of
Lloyds TSB, which has specially trained Islamic Home Finance consultants.
Lloyds TSB is offering alburaq Islamic Home Finance, in a growing number of branches across the UK, as part of an Islamic financial service pilot. The bank is also offering an Islamic current account.
Paul Sherrin, head of Islamic financial services at Lloyds TSB, said: “Lloyds TSB Islamic financial services 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 recognised and fulfilled a real need in the community 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.”
The launch of alburaq buy-to-let follows a price review in September whereby the pricing of rent was lowered across the product range, a range which now includes self-cert and discounted rent products.
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 their London subsidiary, while Bristol & West provide all the product support, process expertise and financial resources.