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Terms, Conditions and Criteria for Murabaha and Ijara

Minimum property value £155,000
Minimum finance amount £100,000

Criteria and Conditions

Payment term
  • Murabaha up to a maximum of 15 years, minimum term 5 years.
  • Ijara up to a maximum of 25 years, minimum term 8 years.
Income Multiples      Murabaha
  • 2½ times primary annual income (sole applicants).
  • 2½ 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 2½ times combined income for joint applicants.
Fees
  • Standard fee of 0.75% of the finance amount.
  • Buy to let fee of 1.0% of the finance amount.
  • Non-UK Residents fee of 1.25% of the finance amount.
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
  • Most types of residential property, including some ex-local authority properties, considered (excluding Right to Buy). The property must be in England & Wales. Minimum lease term; 40 years-unexpired in excess of the payment period.
Letting
  • No tenancies without AUBUK 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 AUBUK is required; all costs are payable by the client.
Terms & Conditions
  • Full terms will be detailed in our offer letter and Manzil Home Purchase Plan documents.
References
  • Satisfactory bank references and employment details. Three years accounts for the self employed.

 

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON YOUR HOME PURCHASE PLAN