Buy a home or invest in property without paying interest. We explain the Sharia compliant routes clearly and help you choose the one that fits.
Who it is for
In plain English
In Islam it is forbidden to borrow or lend money in exchange for interest. That rules out a standard mortgage for many Muslims, who may not have the funds to buy a property outright.
Islamic mortgages, also known as Halal mortgages and Home Purchase Plans, were introduced in the UK in the early 2000s as an alternative. They follow the principles of Islamic law, or Sharia.
They are not only for Muslim clients. Non Muslims have bought property this way too.
Musharakah is a partnership between you and the bank. The bank buys the property and owns it with you.
You pay rent, known as Ijarah, on the part the bank owns. Alongside the rent you make regular payments that buy more of the property. This carries on until you own all of it.
Ijara means lease. The provider buys the property and you pay an agreed amount each month under a lease agreement.
The provider holds the title until the final payment is made. Because you pay rent, no interest is paid or received.
Every situation is different. We take the time to understand yours, explain the routes open to you and help you decide what is right.
The principles
Riba
Charging or paying interest is forbidden in Islam, so none is charged.
Musharakah
You and the bank own the property together. Your payments grow your share until it is all yours.
The terms are set out clearly, so both sides know their rights and obligations.
The finance is tied to something real, the property itself.
Home Purchase Plans
Drag the dot along the line
The bank's share 80%
Your share 20%
Day one
You and the bank buy the home together.
Your deposit is your share. The bank owns the rest and you live in the home.
A simple picture of how a plan works. It is not a quote or advice, and providers structure their plans differently.
Side by side
Both are ways to finance a property. We arrange both and will explain which suits you.
What it is
Conventional
A loan secured on the property.
Islamic
A partnership and a lease with the bank.
What you pay
Conventional
Capital and interest each month.
Islamic
Rent on the bank's share, plus payments that buy that share.
Who owns it
Conventional
You do, with the loan secured against it.
Islamic
You and the bank together, with your share growing over time.
What to expect
Drag the dot along the line
Islamic finance
What happens
We talk about the property, your circumstances and what you are planning.
Your part
Tell us what matters most to you.
Every situation is different.
Good to know
No. The name suggests it, but non Muslims have also bought property with a Home Purchase Plan.
Enquiries
Tell us about the property, your circumstances and what you are planning.
3rd Floor, 45 Albemarle Street, Mayfair, London W1S 4JL
0208 058 6560 hello@levanafinance.co.uk Message us on WhatsAppLevana Finance
45 Albemarle Street, W1S 4JL
