Ijara

IJARA MORTGAGE

Interest-free (you pay rent instead of interest)
Minimum deposit 10% (subject to status)
Maximum term 30 years
Any capital gain in your property is entirely yours inbuilt flexibility

What is an Ijara mortgage and how does it work?

Ijara mortgages enable you to pay rent instead of interest.

It is very simple and straightforward to buy a property with an Ijara mortgage. You start the process by finding a property you wish to purchase and agree the price with the seller. We then find an Ijara lender who will agree to buy the property from the seller at the agreed price, and sell it to you for the same price, allowing you to spread the cost over a term of up to 30 years. You will be required to pay a minimum deposit of 17% of the value of the property.

To make the deal viable for the lender, you must also agree to pay rent to the lender throughout the term. The amount of rent you pay depends on the amount of equity you have in the property at the time. At the start of the mortgage you will have less equity in the property than you will at the end, therefore you will pay a higher rent at the beginning than you will towards the end.

The rent you pay will be recalculated every twelve months. Each time the rent is recalculated you will also be given the option to make additional lump sum repayments or to completely pay off your mortgage with a single lump sum. These options make Ijara mortgages highly flexible.

All material on this website is provided for information only and is not intended to form part of any offer or contract. Our policies and practices may change at any time without notice. Details of properties are provided from information received and , their accuracy cannot be guaranteed.