Al Rayan Bank follows Sharia law, which forbids companies from charging interest. This means its mortgages work a little differently from most.

Its version of a repayment mortgage works similarly to a shared ownership agreement. You’ll buy a percentage of your property with your mortgage deposit, while the rest will be owned by the bank. Your monthly payment increases your share in the property, but also includes a rental payment for the bank’s share of the property. At the end of the mortgage term you will own the property outright.

The bank’s version of an interest-only mortgage involves an agreement to make these rental payments for the length of the term, with an option to buy the bank’s share of the property outright afterwards.

Al Rayan Bank’s mortgages have no early repayment charges.