IslamicFinance.de

Muslim borrowers will be allowed to use Shariah-compliant Home Purchase Plans (HPP) under a change to the Government’s Help to Buy scheme aimed at extending the range of home buyers able to access taxpayer-backed funding. HPPs split ownership of a property between the borrower and their bank, a financing arrangement that accords with Islamic law that prevents muslims from using conventional mortgages that see borrowers paying interest to a lender. Sajid Javid, Financial Secretary to the Treasury, launched the updated scheme on February 11 at an Islamic finance conference in London.