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Compare home finance arrangements
Payments, costs, ownership, exit terms and governance side by side. Every entry shows whether it is illustrative or verified, and every calculation shows its working.
Illustrative No live provider data yet. All entries are worked examples.
These two entries assume different property values or deposits, so the figures are not like for like.
| Feature | Illustrative arrangement AIllustrative | Illustrative arrangement BIllustrative |
|---|---|---|
| Payments | ||
| Starting positionThe property value and deposit this example assumes. Like-for-like comparison needs the same starting position. | £350,000 home, £52,500 deposit (15%), £297,500 finance | £350,000 home, £52,500 deposit (15%), £297,500 finance |
| Initial monthly payment | £1,737 | £1,725 |
| Term | 25 years | 30 years |
| How payments may change | Fixed for 5 years, then reviewed against the provider's published rate | Variable, reviewed every 6 months |
| Rental or profit-rate basisIslamic home finance does not charge interest. Your payment usually includes rent on the part of the home the provider still owns, or a profit agreed at the start. How that rate is set and reviewed affects what you pay. | Rent on the provider's share, 4.99% a year for the fixed period | Rent set by reference to a published benchmark, 5.69% a year at the start |
| Upfront costs | ||
| Product fee | £999 | £1,499 |
| Legal costs | £650 | £850 |
| Valuation fee | £400 | £350 |
| Total upfront costs | £2,049 | £2,699 |
| Ownership | ||
| How ownership is acquiredIn most arrangements the provider owns all or part of the home at the start. Your share grows as you make payments. Legal ownership may only transfer to you at the end. | Co-ownership. You buy the provider's share monthly and the rent falls as your share grows | Lease to own. Acquisition payments build your share and legal ownership transfers at the end |
| Flexibility and exit | ||
| Overpayments | Up to 10% of the provider's share each year without a fee | Allowed at any time, minimum £1,000 |
| Early settlement or exit | Fee of 2% of the provider's share during the fixed period | No exit fee, £295 administration charge |
| PortabilityWhether you can take the arrangement with you if you move home. | Can move to a new property, subject to approval | Not portable |
| Eligibility | ||
| Eligibility restrictions | UK residents, minimum deposit 10% | UK residents, minimum deposit 15% |
| Property restrictions | Leaseholds need at least 85 years remaining | Houses and flats in England and Wales only |
| Regulation and governance | ||
| Regulatory status and protections | Illustrative entry. A real product would show the provider's FCA status. | Illustrative entry. A real product would show the provider's FCA status. |
| Sharia governanceWho reviewed the product for Sharia compliance and whether their documents are published. Scholars can hold different views. | Illustrative entry. A real product would name its Sharia reviewers and link to their approval. | Illustrative entry. A real product would name its Sharia reviewers and link to their approval. |
What you pay and what you own
Illustrative arrangement A
- Estimated total paid
- £106,269
- Estimated share you own
- 24.7%
Your share: 24.7%, about £86,450 of the home value
Illustrative arrangement B
- Estimated total paid
- £106,199
- Estimated share you own
- 21.2%
Your share: 21.2%, about £74,200 of the home value
Over 5 years the estimated amount paid differs by £70. Illustrative arrangement A leaves you owning about £12,250 more of the home.
Show the working and assumptions
- Estimated total paid = initial monthly payment × 12 × years + product, legal and valuation fees.
- Assumes the monthly payment does not change during the period. Most arrangements review payments, so actual amounts will differ.
- Your share is the equity figure recorded for each entry, including your deposit. It ignores any change in house prices.
- Excludes stamp duty, insurance, moving costs and any early settlement charges.
- Entries marked Illustrative are worked examples, not real products.
Illustrative arrangement A
A shorter 25-year term means more of each payment buys the provider's share, so you own more of the home sooner.
Illustrative arrangement B
The lower monthly payment comes from a 30-year term. You pay for longer and own less of the home after five years.
Reading the comparison
The monthly payment is only the start. A longer term lowers the payment but means you own less of the home for longer. Fees paid upfront can cancel out a small difference in rate.
The share you own matters because it is what you keep if you sell or move. In a Diminishing Musharakah. A co-ownership arrangement. You and the provider buy the home together, and you buy the provider's share gradually while paying rent on the part you do not yet own. Glossary arrangement it grows each month. In Ijara. A lease-based arrangement. The provider buys the home and leases it to you, and ownership transfers once the agreed payments are complete. Glossary, legal ownership usually transfers at the end.
Where a figure has not been confirmed, it shows as Not provided rather than being guessed.
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