You’ll typically need a deposit of at least 20% of the property to qualify for a Sharia-compliant home purchase plan.
For example, if the property you want to buy is valued at £200,000, you might need to put down at least £40,000.
Providers of home purchase plans can also use the government-backed Help to Buy scheme.
Under this scheme, a property’s ownership is split between the customer and the bank. After buying a portion of the property with their initial deposit, the purchaser of the property pays regular instalments to the bank. This covers rent for the portion they don’t own and an acquisition payment.
In this way, a customer gradually buys the property from the bank and eventually becomes the sole owner.