Lloyds TSB has announced the launch of a home finance offer specifically geared towards enabling British Muslims to purchase their own homes.
Unlike a traditional mortgage, the Islamic home finance offer is not a loan, but sees the bank buy up to 90 per cent of the property outright.
The customer pays the remaining percentage upfront and then repays the outstanding sum, and a rental payment, over an agreed term.
In this way the home finance plan complies fully with Islamic sharia law, which forbids the payment and receipt of interest, or riba.
"Our research tells us that three quarters of the country's Muslims want banking services that meet the needs of their religion and this new home finance product should help bring a new generation of homeowners onto the property ladder," said Mark Austin of Lloyds TSB Islamic financial services.
The home finance plan forms follows Lloyds TSB's launch last month of a current account aimed at Britain's Muslims.Click here for more information about mortgages.
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