IBB announces assault on UK mortgage market

by Gill Montia

Story link: IBB announces assault on UK mortgage market

Following the launch of its Sharia’a-compliant fixed-term deposit account last month, Islamic Bank of Britain (IBB) has announced that it is intent on increasing its share of the UK mainstream mortgage market.

The Islamic lender is offering a new House Purchase Plan at 3.99% plus a £299 administration fee.

The rate is fixed until June 2010 and commercial director, Sultan Choudhury, says IBB is “throwing down the gauntlet to conventional banks”.

IBB also launched a new website for mortgage intermediaries and independent financial advisers in December and sees itself as having pioneered Sharia’a compliant retail banking in the UK.

Mr Choudhury explains: “The bank is open to customers of all faiths, so my call to UK homebuyers and homeowners is to put any misapprehensions to one side and come and find out how a Home Purchase Plan from IBB can really make a difference to your pocket.”

In addition to its range of personal finance products the bank also offers Sharia’a compliant business banking, with services now extending to commercial property finance.

All products are designed to exclude the use of interest and are approved by a Sharia’a Supervisory Committee.