Over the past 5 years alburaq has revolutionised the way that Shariah compliant home finance has been offered.
We were the first to offer a full range of products including:
- Low start discounted products designed to give lower payments in the first years of owning a property, a time when there is the biggest drain on personal finances
- Fixed priced products, designed to give payment certainty
- Products for the self-employed and designed for those who have difficulty proving income
- Products designed specifically for Muslim professionals
- Products where only minimal deposits are required, to help the first-time buyer
- We were the first provider to make products widely available through independent financial advisers
Our service and products were such that Lloyds/TSB and the Islamic Bank of Britain approached us for help with providing Shariah compliant home finance to their customers.
In 2009 we won the ‘What Mortgage’ award as the best provider of Shariah compliant home finance. What is significant about that award is that, unlike many others, it is truly independent.
In September 2008 alburaq launched the alburaq Shariah Compliant Savings Plan which was the first product of its type available in the UK. Designed to protect the depositor’s capital, the account provides the opportunity to gain return linked to the performance of shares.
alburaq has been able to innovate so quickly as our business model involved working from a low-cost base and by partnering with other institutions who could provide the economies of scale to make our range cost competitive, flexible and with a highly personalised service.
Unfortunately, on the 1st May 2009 our main partner bank, the Bank of Ireland, announced it was withdrawing from the Islamic Home Finance Market. This had nothing to do with the success of their venture with alburaq but was as a direct result of the global banking situation, whereby the Bank of Ireland took the strategic decision to de-leverage its UK mortgage portfolio.
All our existing customers will be unaffected and will of course continue to receive a high level of service from the alburaq processing team. (0844 8922 874).
For new customers our service is temporarily restricted so that we are only able to consider finance with a minimum value of £500,000 and a maximum finance to value of 65%.
We are currently working hard to identify a new strategic partner and are confident that we will shortly again be at the forefront of Islamic banking in the UK.
Q.1 Why has the decision been made for Bank of Ireland to withdraw from this market?
Due to current market conditions Bank of Ireland has decided in line with its strategic focus to selectively de-leverage its UK mortgage book. alburaq products will continue to be offered by ABC International Bank.
Q.2 How will this decision impact existing alburaq customers?
Our existing customers are unaffected by this decision and remain a high priority to Bank of Ireland. They will continue to receive the same high level of service they are familiar with
Q.3 What will happen to rental payments?
All Terms and Conditions will remain exactly the same for existing customers. Rent Reviews will still occur in line with these conditions, in March and September. Any falls in LIBOR will be fully passed on to customers. Please note that LIBOR can also increase and therefore Rental Payments can go up as well as down.
Q.4 Are alburaq Savings Plan customers affected by this announcement?
alburaq Savings Plan customers are unaffected by this announcement and customers accounts will continue to be administered by Bank of Ireland. (0845 6038340).
