Amanah Home Finance: Buy your own home | HSBC UK

Based on the Diminishing Musharakah method of financing, Amanah Home Finance enables you to buy your home without paying interest. Simply described, we (HSBC Bank plc) will buy the property jointly with you and the property will be held in Trust by a third party - HSBC Trust Company. As you make monthly payments during the finance term your share in the property will increase as our share decreases.

Assuming you pay a 35% deposit at the start of the agreement, the bank will typically have a 65% share and you will have a 35% share. With each payment you make, you will pay us rent for use of the bank's share of the property and acquire an additional share for yourself. Once all the payments have been made, you will own all the shares and the property will be transferred to your name on your instruction.

You're free to make additional lump sum payments to acquire additional shares in the property. These payments are accepted twice a year, on the 25th of January and July. The minimum lump sum payment is £5,000 and we will require a month's notice before the above dates to process them.

You can also make full repayment without penalty at any time. This will be subject to a settlement fee.

Amanah Home Finance is available for all freehold and leasehold domestic residential properties, including flats and maisonettes. If the property you want to buy is leasehold, it needs to have an unexpired lease term of at least 50 years plus the term of the financing. We'll also require the landlord's consent for us to let the property.

When you apply for HSBC Amanah Home Finance, we'll let you know whether your application has been successful as soon as possible and, if so, how much finance we'll be able to provide (subject to a full credit assessment).

Your home is at risk if you do not keep up the required payments and comply with the terms of your HSBC Amanah Home Finance plan.