Islamic mortgages, explained
Most are home purchase plans: you buy the home with a provider, pay rent on its share and buy it out over time.
How a home purchase plan works
You buy together
Your deposit becomes your share, and the provider buys the rest.
You pay rent on its share
Each monthly payment covers rent on the provider’s share and buys a little more of it.
You end up owning it
As your share grows the rent falls, and at the end you own the lot.
Latest home purchase plan rates
Gatehouse Bank purchase plans for UK residents, checked 12 November 2026. After the fixed period its standard variable rate applies, currently 7.25%.
Rates shown are for information and depend on your circumstances. Your home may be repossessed if you do not keep up payments on a home purchase plan. Some links may earn us a fee, which never changes the order.
Who offers what
Check each provider’s current range before relying on this. Plans change quickly.
Gatehouse Bank
ContractDiminishing musharaka (co-ownership) Source
Home purchase plans up to 95% finance to value for UK residents, plus options for expats and international residents. Green discount for EPC A or B homes.
Visit Gatehouse Bank →
Al Rayan Bank
ContractCo-ownership with ijara (lease) Source
Home purchase plans with fixed and variable rental rates. We couldn’t read a current rate table on its public pages, so ask it directly or use a broker.
Visit Al Rayan Bank →
StrideUp
ContractDiminishing musharaka (co-ownership) Source
Home purchase plans for your own home, which are FCA regulated, from a 15% deposit. Its buy-to-let plans aren’t FCA regulated.
Visit StrideUp →
Offa
ContractNot stated in its public documents
Authorised by the FCA for home purchase plans in March 2025, with a plan for your own home since February 2026. Also offers buy-to-let and bridging finance.
Visit Offa →Guides to read
Related tools
The details
How the cost compares
Sometimes it’s more, and sometimes not by much. Compare the rate and every fee at the same deposit. A low rate with a big product fee can lose to a higher rate on a small amount.
Deposit size
Gatehouse’s ranges go up to 95% finance to value for UK residents, so 5% in some cases. Rates fall sharply once you pass 20%.
When the fix ends
You’ll move to the provider’s variable rate unless you switch. Diary it at least three months ahead.
Stamp duty
The law has rules so this structure doesn’t usually trigger it twice, and your conveyancer should confirm how they apply to you.