How home purchase plans work
Instead of an interest-bearing mortgage, a Sharia-compliant home purchase plan typically uses a co-ownership (diminishing musharakah) or lease-based (ijara) structure. The provider and the buyer own the property together; the buyer pays rent on the provider’s share and gradually buys it out.
Availability for overseas buyers
A small number of UK providers offer home purchase plans, and some accept overseas buyers for investment properties. Expect larger deposits and stricter criteria than for UK residents. Availability changes, so speak to an FCA-authorised broker who works with Islamic finance providers.
What to compare
Look beyond the headline rate:
- Deposit requirement and maximum finance
- Rental rate on the provider’s share and how it can change
- Fees, early buy-out terms and overall cost
- Eligible property types and locations
BPG provides property investment consultancy and coordinates regulated professionals. Mortgage and legal advice is provided by FCA-authorised brokers and SRA-regulated solicitors. Nothing on this website is financial, legal or tax advice. Property values and rental income can fall as well as rise; forecasts are not guarantees.