Home Purchase Plans and Halal Mortgages for clients who want their property finance to be aligned with Islamic principles.

In Islam, it is considered forbidden to borrow or lend money in exchange for interest. Some Muslims are therefore unable to invest in a property using a standard mortgage, but may not have the funds to purchase a property outright with cash.

The concept of Islamic Mortgages, also known as Halal Mortgages and Home Purchase Plans, was introduced in the early 2000s. In a typical structure, the bank purchases the property, rents it to the customer and sells shares in the property over time.

Although the name suggests that this type of mortgage is aimed solely at Muslim clients, non-Muslims have also purchased property using Islamic Mortgages.

A CONSIDERED RECOMMENDATION

Every situation is different. We will take time to understand your circumstances, explain the available routes and help you decide what is right for you.

What is a residential mortgage?
A residential mortgage is a loan secured against a property you are buying or renovating. It is an agreement between you and a lender and is typically used to purchase a home.

The amount you borrow is based on factors including the property valuation, your credit score, your income and your debt-to-income ratio. Generally, the more equity you have in the property, the better the terms may be.

There are a variety of residential mortgage products to choose from, such as fixed-rate, tracker, variable and offset mortgages.

What is Buy to Let?
Buy to Let is an opportunity to invest in property by purchasing a home specifically to rent to one or more tenants. The aim may be to generate income through rental payments, benefit from capital appreciation, or both. It is generally considered a long-term investment.

Key considerations include the costs of purchasing a property, such as stamp duty, legal fees and survey costs, as well as the time and effort involved in finding a suitable tenant, managing the tenancy and maintaining the property.

Rental income, potential capital appreciation and tax considerations should all be understood before investing. Buy to Let can be a valuable way to invest in property, but it is important to understand the risks and take steps to protect your investment.

A CONSIDERED RECOMMENDATION

Every situation is different. We will take time to understand your circumstances, explain the available routes and help you decide what is right for you.

Bridging finance in the UK can provide emergency or short-term funding for a variety of property needs. It can be particularly useful when buying a new property, moving between homes or refurbishing an existing property.

For homeowners, bridging finance may help cover moving costs, secure a purchase before a sale completes or provide funds to acquire a property while longer-term finance is arranged. For existing properties, it can fund renovations, extensions and refurbishments intended to improve market value.

Bridging finance may also cover certain legal costs associated with a purchase or sale. It can give borrowers the flexibility to act on an opportunity or take advantage of a favourable long-term mortgage rate when one becomes available.

As a short-term facility, the exit strategy is important. We consider the property, the timetable and the route for repaying the bridge together before making a recommendation.

A CONSIDERED RECOMMENDATION

Every situation is different. We will take time to understand your circumstances, explain the available routes and help you decide what is right for you.

If you are looking for a commercial mortgage in the UK, there are a range of options to suit individual needs. Whether you require finance for a rental property, a mixed-use property or a retail site, lenders may be able to offer competitive rates and terms based on your circumstances.

The right option will depend on factors including your credit profile, the type of property and the amount of capital required. Common lending criteria can include the loan-to-value ratio, the size and type of property, rental income, available security, borrower experience and personal guarantees.

A CONSIDERED RECOMMENDATION

Every situation is different. We will take time to understand your circumstances, explain the available routes and help you decide what is right for you.

Second charge mortgages are UK financial products that help borrowers access funds from the available equity in their home. They were once called second mortgages and can offer an alternative to remortgaging when a borrower wants to keep their current mortgage in place.

With a second charge mortgage, you may be able to raise funds without changing your existing home loan or lender, avoiding some of the fees and costs associated with taking out a new first mortgage.

A second charge mortgage is a secured loan. The amount available depends on the equity in the property and is usually assessed against the lower of the current property value or the amount owed on the primary mortgage. Rates are often higher than first-charge mortgage rates because of the additional risk to the lender, and repayment terms are commonly shorter, although both can vary.

Second charge mortgages may be used for purposes such as home improvements, business funding or higher education costs. Suitability, affordability and the impact on your property should always be carefully considered.

A CONSIDERED RECOMMENDATION

Every situation is different. We will take time to understand your circumstances, explain the available routes and help you decide what is right for you.

Do I need protection?
For many people, buying a home and taking on a mortgage is the biggest financial commitment of their lifetime. Depending on the location and property, that debt can be hundreds of thousands of pounds or more.

People often focus so much on buying the home that they forget to think about how they would protect it if an unforeseen event occurred. We insure our phones, houses and pets, yet the largest financial commitment we make can be left without the same consideration.

Our role
At Levana Finance, our role is not only to help you secure the house, but also to help you remain in it. While we discuss your mortgage needs, we will also take time to discuss your protection needs and the cover that may be appropriate for your circumstances.

A CONSIDERED RECOMMENDATION

Every situation is different. We will take time to understand your circumstances, explain the available routes and help you decide what is right for you.