Explore our approach to ethical home financing

MASS APPEAL​ Primary Finance provides a sum of money upfront for you to purchase a property.
DEBT-FREE​​ You pay rent in proportion to Primary Finance’s equity share, giving you the right to live in the property.
FLEXIBLE & AFFORDABLE​ You may purchase any amount of equity back from us at any time until you completely own our share. However there is no obligation to do so.
​SECURE You may also sell equity back to us if you cannot afford your rent in any month.

Believe in our vision? We need your support!

Please support us with some qard hasanah (Islamic loan) to support our launch.
Learn more about how you can become a priority customer for life.

Get ahead with Primary Finance.

Fully Sharia compliant

Our product is fully Sharia compliant and has been certified by Sheikh Badrul Hasan of Dome Advisory services. We believe in being ethical and acting with integrity in everything we do, with the ultimate goal of doing business to benefit everybody mutually.

No burden of debt

Since the homebuyer is under no obligation to purchase equity in any given month the burden of debt is completely eliminated. This also means no early or late repayment fees ever.

Rental pegged to local housing market

The rent we charge has no relation to macroeconomic indicators such as interest rates. Instead it is determined by the local housing market and capped, with annual reviews to reduce uncertainty.

Affordability

The customer buys further equity at the original purchase price, not current market value (unlike the government’s help to buy scheme). We will usually compare against our competitors when quoting to ensure we charge the most competitive rate possible.

True risk sharing

In case of a shortfall upon sale, proceeds are split according to respective equity shares (traditionally, bank has first call on proceeds and homebuyer may end up with nothing upon foreclosure). If there is a profit we usually give all or most of it, including our share, to the homeowner.

Ultimate flexibility and security

Our product eliminates almost completely the risk of foreclosure by introducing an equity buffer. This allows the homebuyer to pay us equity if they cannot afford rent. They can then purchase it back again once they are able to, in their own time.

Get on the waiting list.

If you would like your name added to our waiting list, please sign up

Rent or Interest: What's the difference?

Consider the following two examples.

Example 1

  • Ari lends £5,000 to Lina.
  • Lina must repay Ari within 1 year – so Lina owes Ari a debt.
  • Ari charges Lina interest for each day that any or all of the debt is outstanding.
  • This is interest as it is a monetary charge upon a debt.

Example 2

  • Sara and Hamida purchase a car together for £5,000 each.
  • Both are equal owners in the car, so nobody owes a debt to anybody.
  • Hamida does not use the car so she charges Sara rent each month for the right to use it exclusively.
  • This is not interest as there is no burden of debt (Sara does not owe Hamida the £5,000; she is simply paying to use the car).
  • If Sara was contractually obliged to purchase Hamida’s share then it would be considered a debt and the "rent" would be equivalent to interest.

Primary Finance eliminates the burden of debt through its pricing methodology and ensures the rental obligation does not have the same characteristics as interest.
Our approach also avoids the negative economic consequences of interest-based finance, such as inflation and market instability.

What does it cost?

We give the homebuyer complete control over their finances

The cost of the financing is dependent upon how the homebuyer treats the product. For example:

We recommend setting up a standing order to pay the recommended amount each month

Got questions?

What is the difference between this and an Islamic mortgage?
The key difference is that the Primary Finance Home Purchase Plan is free from the burden of debt as we do not force you to buy our share from us, although you are free to buy it from us if you wish.
Who owns the property?
You are the legal owner of the property from the start of the contract. We simply take a legal charge over it to protect our interest in the property. For pricing purposes we treat the property as though we are joint owners and calculate our share of the property based on the amount of money we have contributed.
How often is rent reviewed?
We conduct annual rental reviews. If local property prices in your vicinity have increased your rent will increase; if they have decreased your rent will decrease. The maximum increase or decrease is capped according to the terms in your offer letter. When calculating your affordability and providing you with an illustration we will make the assumption that rent increases by the maximum amount each year. In this way you can be confident that, as long as you stick to the recommended monthly payment, you will never pay more than the illustration although you may pay less.
What is the monthly recommended level of equity purchase?
This is the amount of equity you would have to purchase each month to completely purchase our share by the agreed term. For example if we arrange £120k of finance for you over 10 years then it would be £1k per month.
How is rent calculated?
The rent we charge is based on how much it would cost to rent your property on an active local market, scaled down for our share of the property. We will usually give you a large rental discount in any month where you purchase the recommended level of equity.
What are the eligibility criteria?
To be eligible for finance you must pass our affordability assessment and not have any history of arrears or CCJs. You must also have a good credit score rating and be resident in the UK.