The big difference between us and Islamic mortgages is that with us, you don't need a mortgage at all. Instead we buy the home with you, as a partner. If you buy 5%, we pay for the remaining 95%. Remember, you only pay rent on the part of the home you haven't yet bought.
Some of the reasons why our customers choose us over Islamic mortgages:
require relatively higher initial deposits, approx 30-35%
they can be a bit slow in processing your application relative to mainstream companies
rents are set as a % (rather than being based on similar rents from homes in the local area)
Whereas with Wayhome:
the home is bought in full upfront so nobody needs a mortgage
we only require a minimum 5% deposit of the home value. But if you did want to put in a higher deposit, you can - the maximum is 30% of the homes value.
you and our funding partners split many of the buying and ownership costs (e.g. if the boiler breaks down, and you buy 5% of the home, you only 5% of the repair costs)
Rents are set based on local market prices, so the rent you pay is what a similar home in the same area would typically rent for
| Gradual Homeownership | Islamic Mortgages |
Shariah-compliant | ✅ | ✅ |
Interest-free product | ✅ | ✅ |
Minimum 5% deposit | ✅ | ❌* |
Rent charged at local market rates | ✅ | ❌ |
Eligible properties found and shown online | ✅ | ❌ |
Buy more of your home whenever you like | ✅ | ❌* |
No fees to buy more of your home | ✅ | ❌ |
Costs like Stamp Duty and solicitors' fees are shared fairly | ✅ | ❌* |
*This can depend on the product