Quote:
Originally Posted by WillowTheWhisp
I was reading up on Sharia mortgages a little while ago - the buyer actually just pays the bank well over the odds for the property so that they can buy it from them over a period of years. The bank of course makes a profit. How else would they be able to exist and pay staff wages etc? A rose by any other name?
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Willow it is as I said, the 'original cost' of the house plus what interest that would be payable over the term divided by the number of payments to be made
The interesting point as raised by Neil is that it effectively is a 25 year fixed rate. now how close to the normal fixed deals(say 5 year ones) is the rate they use. If it is teh same then it could be a very useful tool to people who want to know exactly want a mortgage would be for teh whole term of teh mortgage