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Murabaha
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Terms, Conditions and Criteria for Murabaha and Ijara


Minimum property value £50,000
Minimum finance amount £40,000
Minimum first payment 20% of property value up to £100,000.
17% of property value £100,000 to £250,000 (max 17%).
Figures negotiable above £250,000.
25% of property value for Non-UK residents, for applicants working abroard, or for buy-to-let properties.

Criteria and Conditions

Payment term
  • Murabaha up to 15 years, minimum term 5 years.
  • Ijara up to 25 years, minimum term 7.5 years.
  • Max 15 years for non-UK residents
Income Multiples      Murabaha
  • 2.5 times primary annual income (sole applicants).
  • 2.5 times the higher income plus 1 times the lower income or 2 times combined income for joint applicants.
     Ijara
  • 3 times primary annual income (sole applicants).
  • 3 times the higher income plus 1 times the lower income or 2.5 times combined income for joint applicants.
Fees
  • Arrangement fee of 0.75% of the property valuation less the first payment.
Buildings insurance
  • Murabaha – cover is required and may be arranged by the client or may be part of the bank’s block policy.
  • Ijara – cover is required and will be arranged by the bank under its block policy.
Other types of insurance
  • Life assurance and other types are not compulsory.
Types of property
  • All types of residential, owner occupied property considered in England & Wales. Minimum lease term; 40 years-unexpired in excess of the payment period (currently excluding right to Buy).
Letting
  • No tenancies without AUB (UK) agreement (our consent will not be unreasonably withheld).
Eligibility
  • Suitable for those in permanent employment or the self-employed, and who are able to pay us the purchase price before the age of 65. Minimum age 18.
Valuation
  • A valuation of the property addressed to AUB (UK) is required; all costs are payable by the client.
Terms & Conditions
  • Full terms will be detailed in our offer letter and Manzil documents.
References
  • Satisfactory bank references and employment details. Three years accounts for the self employed.