Murabaha

MURABAHA MORTGAGE

Interest-free (you pay a higher price for the property, instead of interest)
Minimum deposit 17% (subject to status)
Maximum term 15 years Any capital gain in your property is entirely yours Inbuilt flexibility

Murabaha mortgages enable you to pay a higher price for a property instead of paying interest.

Buying a property with a Murabaha mortgage is very simple and straightforward. You start the process by finding a property you wish to purchase and agree the price with the seller. We then find a Murabaha lender who will buy the property from the seller at the agreed price (subject to status and valuation). You will be required to pay a minimum deposit of 17% of the value of the property. You agree to buy the property from the lender over a period of time, but instead of paying interest you simply agree to pay a higher price for the property, which makes the deal financially viable for the lender without the need to charge you any interest. Your payments remain fixed throughout the term of your mortgage.

Murabaha mortgages are based on the principle of trading, or buying and selling goods at a profit. Murabaha mortgages represent a contract of sale between a lender and a client, which establishes a fixed Murabaha price including a profit mark-up, secured by a mortgage and settled over a fixed period of time, of up to 15 years. At the end of the mortgage period you become the sole owner of the property, and you receive the full benefit of any capital gain in the property.

The property is registered in your name and the bank holds security over it in the form of a legal charge (mortgage). As with traditional interest-bearing mortgages, stamp duty is payable once only on all new Murabaha mortgages.

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.