Legal & General and Islamic Bank of Britain have announced a partnership that will see the bank’s Islamic mortgage products made available to the club’s intermediaries.
The news follows IBB’s announcement of a £20m capital injection from founding shareholder Qatar International Islamic Bank.
L&G’s intermediaries can begin developing a specialised Islamic finance offering by registering online, which will then allow them access to the bank’s mortgage range, including the Sharia compliant home purchase plan product.
The HPP allows customers to purchase their home in partnership with the bank on a leasing and diminishing partnership agreement. Rates start at 3.99 per cent and all products carry an arrangement fee of £299.
The bank’s intermediary team are available to support and guide intermediaries through IBB’s Islamic mortgages. The bank also has an intermediary helpline and a dedicated intermediary Islamic finance website.
IBB commercial director Sultan Choudhury says: “There is a growing demand amongst UK home-buyers for competitive, Sharia compliant home finance as an alternative to conventional mortgages. This partnership between Legal & General and IBB gives Mortgage Club intermediaries access to a wider choice of products, an additional revenue stream and the ability to extend their offering across a diverse range of communities. Working with Legal and General marks a significant step forward for the Bank’s plans to expand its reach.”
L&G head of mortgage products Martyn Smith says: “This relationship between IBB and Legal & General gives our brokers the opportunity to tap in to more potential customers and gain a real competitive edge. We pride ourselves on being ahead of the game by offering competitive and innovative products. We welcome IBB and look forward to a mutually beneficial partnership.”