Introduced under the brand name alburaq, this method of house finance follows the unique Islamic financing principles of diminshing musharaka, meaning co-ownership or partnership. Known as alburaq shariah compliant home finance two products are being introduced that offer competitive and flexible terms, with pricing comparable to an equivalent interest mortgage.
The ABC and Bristol & West partnership is intended to provide the UK's Muslim communities with the optimal combination of Islamic banking know-how, derived through ABC's long commitment to Islamic finance, with the financial strength and stability of one of the UK's foremost mortgage banks.
The product is devised, guided and marketed by ABC, through their London subsidiary while Bristol & West will provide all the product support, process expertise and financial resources.
Julie Blunden, head of market development at Bristol & West, says: “We have worked closely with ABC and their Shariah board for the past 18 months to ensure we provide a product which offers the strictest Shariah compliance and yet is modern and flexible and that will not place our Muslim customers at any financial disadvantage in comparison with conventional interest mortgages. Working with ABC has given us a valuable insight into the financial needs of the Muslim community in the UK.
“This relationship furthers our aim of ensuring that home ownership is accessible and affordable for anybody who wishes to purchase their own property.”