Islamic Mortgages - Manzil Home Purchase Plans

Manzil Home Purchase Plans
Manzil differs from a conventional 'interest' mortgage because we are able to provide financial help without our clients having to pay us interest. We can do this by employing the Ijarah method of Islamic Finance.

How it works?

Ijara

Under Ijara the bank will buy and own your chosen property.

We then sell it to you for the same price with payment spread over a period of up to 25 years.

While you are buying the property from the bank we will also charge you rent for living in a property we own.

The bank therefore makes its profit from the rent we receive from you and, once you have paid us the full purchase price, the property will become yours.

The bank therefore makes its profit from the higher sale price of the property.

Qualifying criteria

Suitable for those in permanent employment or the self-employed. Who are able to pay the purchase price before the age of 65. Minimum age 18.

Bank statements
Credit check
Employment status check
Minimum deposit.
Minimum deposit requirement
20% of property value up to £100,000.

17% of property value £100,000 to £250,000 (max 17%).

25% of property value for Non-UK residents, for applicants working aboard, or for buy-to-let properties.

Qualifying Property & Value
All types of residential property, owner occupied property considered in England & Wales.

Minimum lease term; 40 years-unexpired in excess of the payment period (currently excluding right to buy).

Minimum property value - £50,000 (residential)

Minimum finance amount - £40,000

Buy to let property value - £100,000

Minimum finance amount - £60,000

Payment terms
Ijara - up to 25 years, minimum term 7.5 years.

Max 15 years for non-UK residents

Income Multiplier
3 times primary annual income (sole applicants).

3 times the higher income plus 1 times the lower income or 2.5 times combined income for joint applicants, however, we will look at each case on its own merits.

Shariah panel / advisors