Costs
Costs and fees
What you pay beyond the monthly figure, and why fees can outweigh a small difference in rate.
Costs to expect
Product fee
Working assumption
Charged by the provider to set up the arrangement. Sometimes it can be added to the finance, which means paying for it over time.
Valuation fee
Working assumption
Pays for the provider's valuation of the property. Some providers include it.
Legal costs
Working assumption
Islamic finance involves different documents from a mortgage. Use a solicitor with experience of it and ask for a fixed quote.
Stamp Duty Land Tax
Working assumption
UK tax rules include provisions so that Islamic finance arrangements are not taxed twice on the same purchase. Confirm how they apply with your solicitor.
Early settlement or exit charges
Working assumption
Some arrangements charge for leaving during a fixed period. Check before you commit.
Adviser or broker fees
Working assumption
Some advisers charge a fee, some are paid by the provider, some both. They must tell you how they are paid.
Working assumption General guidance. Actual fees depend on the provider, the property and your solicitor.
Why total cost matters
Two arrangements can have nearly identical monthly payments while one costs thousands more in fees or leaves you owning less of the home. The comparison adds fees to payments over the same period so you can see the whole picture.