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I am inshallah going to go ahead and purchase a home via the home purchase plan (I.B.B)http://www.islamic-bank.com/personal...-purchase-plan

please can anyone who is experienced in the diminishing musharaka method of financing and/or has knowledge of islamic bank of britain help me with the following questions;

if i would like to make additional acquisition payments to pay of the loan as soon as possible is it better to make additional payments to reduce the length of the term (e.g from 25 years downwards) or am I better of taking a longer term loan (30 years), which will mean lower monthly payments and making additional acquisition payments to reduce the monthly payments?

would you recommend choosing the variable rate of 4.49% where additional payments can be made immediately or should i opt for the fixed rate 4.19% where no additional payments can be made until the fixed period has ended?

[Vikonbarius]

Salaam

To be honest, if it looks like a mortgage, behaves like a mortgage, smells like a mortgage, it's probably a mortgage no matter what you wrap it up as. Sorry, I know I haven't answered your question, but before you commit to an IBB home puchase plan, look into whether in reality, it achieves an interest free arrangement. After all, why do they benchmark against LIBOR if they're products are halaal?

[8Uxtkz7F]

I attempted to obtain a loan from them to purchase a car and specifically asked them about the fact that they had mentioned Mufti Taqi Uthmani on their website. The website implied to the lay person that Mufti Taqi Saab had approved the method of finance they were proposing. After conducting more in depth inquiries, I discovered that Mufti Taqi had not approved that method of finance.