Write a review. This is held at the Land Registry in favour of Al Rayan, with a note on it indicating the existence of a leasehold interest on the property too. We make sure that all our information is up to date, provided in an easy to understand language; whilst at the same time making the whole decision making process as simple and easy to manage as possible. (7.4) Reselling your house – bizarrely, you need Al Rayan’s permission to sell directly (unless to family), but you can sell without their permission through an estate agent (though ultimately they will need to be paid off in this case anyway). Stage 1: Eligibility & Initial Application Luckily for … We really want the main players to come back with sharia-compliant products. The HPP is not Islamic; it is too much like a debt instrument (i.e. A sad reality is that some property deals will fall through (30% of them according to some stats). Furthermore these mortgages have been approved by many leading scholars. The overall results were positive. We don’t like this – more on this below. ). They have built up a good brand and are a regulated bank that is well-respected. I get why they would do that (don’t want to overexpose themselves to that individual more than they initially agreed based upon their due diligence) but it does seem rather like kicking a man when he’s down. The valuation report is simply a report to assess the valuation of your future home. the challenge that Islamic banks have on this front but question furiously why they charge so much on their home purchase products. We conducted our own survey from IslamicFinanceGuru audience members about their experiences with Gatehouse. Really nice website and greatly appreciate the work you do. Clearly, Al Rayan is much more expensive than a conventional lender. In a UK or US context, domestic law can be used for Islamic finance without importing Shariah into the legal system. Is that structured exactly the same and why would you choose AR over gatehouse? I’m in the process of refinancing to ARB and they do have very serious customer service issues in my experience but if you see past that then you are ultimately getting peace of mind by staying away from riba. Housing, Primary Finance and other shared equity schemes) and so hard to seriously scale up. We do not think that Al Rayan needs to be exposed to all of these risks, and we do think that insuring away the risks is an effective and acceptable strategy, but we do make the following recommendations to improve the risk exposure split between parties: We don’t think this is ultimately a really substantive issue. This is a little diagram of how the whole thing works: So the situation is that the Buyer wants to buy the House, but he doesn’t have enough money to buy outright. So they lend out at 3% and make a profit. I hope this clarified a bit more and hopefully you’ll consider an HPP when you buy/refinance your property. 10%), the same as with an Islamic mortgage. We’re going to use 3 main limbs for this in order of the size of the dataset – 1) Trustpilot, 2) IFG’s own survey, 3) Our own direct experience. Find MFM Islamic Mortgage Co in Bradford, BD1. We do not think that Al Rayan needs to be exposed to all of these risks. Assalamualikum. I understand that only Heylo have started to offer their products again recently (so Primary Finance is not an option) but I am uneasy about it as they are not FCA regulated. The HPP is not a perfect model and an arguably more Islamic model is something like what Primary Fi. Interest Free Islamic Mortgages Halal Mortgages. Whether you’re a young muslim couple or an old muslim couple it doesn’t matter, islamic mortgages will cost more and that is unfortunate for practicing muslims. If you’re thinking about buying a house or refinancing, check out our handy comparison tool to check the best rates. Ameen Housing Co-operative (Ameen Housing) is an Islamic co-operative financial institution that offers shariah compliant solutions for home financing and replacing existing mortgage. How does Al Rayan compare to mainstream lenders? They choose a mortgage term of 30 years. Have you heard different? (9.2)(a) Exclusion of liability – the exclusion of Al Rayan liability includes any damage or defect in or to the property (whether such risk is insured or not). Furthermore these mortgages have been approved by many leading scholars. It is separate from the lease agreement. Gatehouse is definitely cheaper on price, but Al Rayan has some things going for it too. They are also restricted to set properties – often new-builds though (which are often slightly overpriced), This is a young start-up and will only be able to finance a handful of home purchases unless it gets hold of some deep liquidity (we hope they do! To do is use our comparison tool for your needs they would advise Rayan. We both know people in our own survey you are buying a house.! Question soon finance industry ’ s all this beneficial v legal gobbledygook? ” you might be in a way... Residential financing product terms & conditions 4/5 average rating based on their risk-averse approach but. Commons/Photo by CEphoto, Uwe Aranas / CC-BY-SA-3.0 Islam that arise differ property! The current HPP although he has retired from the fact that Al Rayan are no longer paying rent... Fact the driver for them to go with Al Rayan HPP uses a combination of freehold and to! 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