Lloyds TSB has launched an Islamic home finance offer to help Britain's Muslims purchase their own homes.
It is one of a range of financial services which Lloyds TSB plans to launch for the Muslim community in the UK - many of whom have taken a traditional, interest based mortgage or choose not to buy their own homes, for religious reasons.

The home finance offer follows Lloyds TSB's launch last month of an Islamic current account and complies fully with Islamic law (Shariah) which forbids both the payment and receipt of interest, known as Riba.

Instead of lending money for a property, the bank will buy the home, contributing up to 90 per cent of the purchase price. The customer will pay the remaining percentage upfront and would repay the outstanding sum over an agreed term, together with a rental payment1.

Lloyds TSB Islamic Home Finance is being piloted, alongside the Islamic current account, in selected branches across the UK including London's Edgware Road, as well as branches in Birmingham and Luton2.

Mark Austin, Lloyds TSB Islamic Financial Services, said: "Finding the money for a new home can be tough at the best of times, but Britain's Muslims face an even more difficult dilemma. With traditional interest based mortgages out of the question for many, the choice has tended to be between going against the faith, or avoiding a mortgage altogether."

"Our research tells us that three quarters of the country's Muslims want banking services that meet the needs of their religion and this new home finance product should help bring a new generation of homeowners onto the property ladder."

In order to ensure that the home finance is fully compliant with Islamic law (Shariah), Lloyds TSB has consulted with a board of renowned Islamic scholars3, who have advised on all aspects of Islamic finance law.

For information on the Islamic Account or Home Finance product customers can call the Islamic Financial Services line on 08456 007 78