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I understand the Bank will review the Rent. I have two questions concerning this:

Why is there a review of the Rent?

What happens if the Rent increases too much and what does this mean for me?

The Banks believe that providing a product that has variable Rent is important to both our customers and the Bank. It is important that the Rent payable remains competitive and provides a rate of return that is comparable with the profit that is made by other providers when advancing conventional non-Islamic loans. At the same time, it is believed customers want the flexibility of knowing that if the rates that are used for benchmarking purposes go up or down; their Rent will accordingly be adjusted. There is a further reason why the Bank adjusts the Rent. Some customers may wish to make additional Payments towards 'acquisition of property', which can usually be made immediately prior to the Rent Review. By periodically adjusting the Rent, the additional Acquisition Payments are taken into consideration when assessing what the new Rent figure should be on each Rent Review Date.

You have the right under the Diminishing Ownership Agreement to purchase the property from the Bank by paying the remaining balance of the Bank's share (i.e. the remaining Acquisition Cost) in accordance with the Diminishing Ownership Agreement. You should refer to the Lease Agreement and the Diminishing Ownership Agreement for further information on your rights concerning this.


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The entire product range offered on this website is Shariah compliant. However, from time to time we will promote relevant none Halal products where no Islamic / Halal alternatives exist. Your home is at risk if you do not keep up monthly payments due under an Islamic / Halal mortgage agreement (your lease and / or diminishing ownership agreement).