The situation
You want to buy a home using a Sharia-compliant Home Purchase Plan (HPP). But how much can you actually borrow? And what will the monthly payments look like?
Islamic lenders typically offer 4–4.5x your household income, with a minimum deposit of 10–20%. Rates are currently higher than conventional mortgages — but you're buying with a clear conscience.
Quick affordability guide
Could finance up to ~£225k. With a 20% deposit (£56k), that's a property worth ~£280k.
Could finance up to ~£315k. With a 20% deposit (£79k), that's a property worth ~£394k.
Could finance up to ~£450k. With a 15% deposit (£79k), that's a property worth ~£529k.
These are rough guides. Actual affordability depends on your deposit, existing debts, credit history, and the lender's criteria.
Calculate your payments
Before you commit
Can you afford the payments if rates rise? Test your calculator with a rate 1–2% higher than today's.
Do you have 6 months of payments saved? An emergency fund is essential before taking on property finance.
Have you spoken to a broker? Islamic finance brokers can access products not available directly. They know which lenders suit your situation.
Current UK Islamic home finance providers
- Gatehouse Bank — largest Islamic HPP provider. Rates from 4.79%.
- Nomo Bank — residential finance from 4.85%.
- StrideUp — shared ownership model. More accessible for first-time buyers.
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