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MANZIL-ISLAMIC |
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> Manzil-Islamic Home Purchase Plans |
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Alburaq–Islamic Home Finance
ABC International Bank (ABC) and Bristol & West plc offer you Alburaq – Islamic Home Finance. Then ABC International Bank and Bristol & West will provide all the technical expertise and support, plus the home finance itself. Alburaq Home Finance is based on the principles of Ijara and Diminishing Musharakah
Instead of lending money for a property, Bristol &West will buy the home, contributing up to 90 per cent of the purchase price. You will pay the remaining share and pay the outstanding sum over an agreed term, together with a rental payment.
Alburaq is a registered trade mark of ABC International Bank plc and is the brand name under which home finance product is provided.
How it works?
Alburaq offers:
•First time buyer / home mover mortgages
• Buy to let options (for up to 10 properties)
• Self cert. options
Described simply, both you and the Bank will each contribute towards the purchase of the home. For example, the Bank may contribute 90% and you 10% of the purchase price. Over a period of up to 25 years, you will make monthly purchase instalments through which the Bank will sell its share (90%) of the home to you. With each payment instalment, the Bank’s share in the property diminishes while your share correspondingly increases. While the purchase instalments are being made, the Bank will charge you a rent for the use of its share of the property, the rent being calculated according to the respective shares owned:
Step 1 - You make an initial payment to Bristol & West of at least 10% of the property value. You sign two contracts, the Diminishing Musharakah contract and the Ijara contract. Then you promise to purchase the remaining 90% of the property over an agreed period and you agree to pay rent to Bristol and West.
•Step 2 - Bristol & West contributes up to 90% of the property value and buys the property on your behalf
•Step 3 - The property is then transferred to you from the seller.
•Step 4 - The property deeds are transferred to Bristol & West.
•Step 5 - When you have purchased the property completely, the property deeds are transferred to you.
Qualifying criteria
Minimum Age:
18 - Residential Standard
21 - Self Certification
As with any conventional property financing, the decision to fund the purchase of the property will be based on our belief in your ability to meet your payments. In reaching this decision, you will be required to provide certain information, some of which is contained in the application form, and the following will also be considered:
• Your income and expenditure
• How you have handled your financial affairs in the past
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• Information received about your financial affairs from, for example, credit reference agencies and any other "referees" which you may provide
• Credit assessment techniques which take all your personal details and establish your creditworthiness.
• Your age.
• The nature of the property and its condition.
•Minimum deposit requirement
RESIDENTIAL APPLICATIONS:
• £15,001 - £500,000: 90% of the value of the property
• £500,001 - £1,000,000: 75% of the value of the property
• £1,000,001 - £2,000,000: 70% of the value of the property
• Above £2,000,000: Please contact us.
SELF CERTIFICATION APPLICATIONS:
• £25,001 - £500,000: 85% of the value of the property
• Exceptions to the above criteria will be looked at by Bristol & West on an individual basis.
Qualifying Property & Value
• Minimum finance amount is £15,001 for purchases and £25,001 for refinances
• Purchase a freehold or a leasehold flat or house (subject to a minimum lease length of 70 years)
• The maximum finance allowed for individual properties is £400,000, being up to 85% of the property value
• The maximum finance allowed for individual properties is £500,000, being up to 75% of the property value
• Multiple properties/ portfolios are allowable; The rent you charge your tenant must be at least 115% of the rental payment you must pay each month; The property must have a value of £40,000 or more
• A basic valuation is required. In addition, the Valuer will evaluate the ease of letting the property and provide an estimate of the likely income from renting the property unfurnished.
Payment terms
You can take Islamic Home Finance for between 7 and 25 years. And you can pay off the balance of the purchase price from Bristol & West at any time.
Income Multiplier
Where 1 applicant has gross income* of at least £20,000:
4.0 x main + 1 or 3.25 x joint
Where gross income* is less than £20,000:
3.5 x main + 1 or 2.75 x joint
Residential Applications - Self Employed allowable income will normally be calculated as an average of the last 2 years Net Profit shown in the Accounts, subject to stable/ increasing Net Profit levels.
Self - Certification Applications - Employed applicants must have held employment for 6 months, Self Employed applicants must have traded for a minimum of 12 months.
For more information please visit: http://www.alburaq.co.uk |
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