The growth in demand for the Sharia-compliant bank’s alternative to mortgages was fuelled by its expansion into buy to let, with the launch of the Buy to Let Purchase Plan in November last year.
IBB head of sales and service Imran Pasha said: “The move into buy to let has played an important role in the growth figures announced and the Bank is developing the product range.
The IBB residential Home Purchase Plans also continue to perform well.”
The minimum deposit for IBB’s fixed and standard Home Purchase Plan products is 20%.
Unlike a regular buy to let mortgage, under the Buy to Let Purchase Plan the bank and customer buy the property jointly, after which the customer pays a monthly fee representing rent to the bank and also the gradual purchase of the property. The buy to let product is available with a 25% deposit and has an administration fee of 1% or a minimum of £995.
IBB is part of several intermediary networks including Sesame PMS, Online Partnership, Intrinsic, Legal & General Mortgage Club and AMPD. It also has an intermediary website.
This year’s growth follows on from that of 2011, when financing for the retail mortgage alternative, the Home Purchase Plan, increased by 40%.