As a result of recent Government legislation regarding Islamic home finance products, afg will not be providing any Halal mortgages until we receive authorisation from the FSA (Financial Services Authority). We envisage this will happen in April 2007, insha'Allah.

This is not a share offer to the public. This information is for members only.

   Introduction
   How Does The Housing Scheme Work?
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Introduction

Realising that small personal loans will not be able to tackle the major issue of buying a house or starting a business, AHL. was launched in February 2000 with a view to providing halal housing finance exclusively to Members of APL. A house is the biggest outlay most ordinary people make in their lifetime and as Muslims we must try our best to do this without involving ourselves in interest.

A number of house finance mechanisms are acknowledged as being acceptable under Islamic law. AHL. uses a Shared Ownership Scheme (S.O.S) within which an Ijara (rental) mechanism is applied. This method is very flexible and, more importantly, fair to the parties concerned. The client's monthly repayments include a rent portion paid on the share of the house that belongs to AHL. In addition, the client may buy additional shares in the house from Ansar as time goes by. As the occupant increases his share of the house each month, the rent decreases accordingly.

The highly successful Islamic Cooperative Housing Corporation (ICHC) based in Toronto, Canada, established since 1981, has been the inspiration for AHL. and we are grateful for their support and co-operation. The ICHC model has been approved by the renowned scholar Muhammad Taqi Usmani, and AHL. has adopted a similar version of the same model.

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How Does The Housing Scheme Work?

After a successful application for home finance, the client is authorised to locate and negotiate the purchase of the house that he or she desires. The institution pays cash for the house and obtains legal title in its name and the client contributes his portion of the purchase price under the contract so as to become a partner of Ansar. The partnership then leases the house to the client at an agreed fixed rental rate throughout the period of the lease. The individual can increase his ownership of the house over a period of time by purchasing shares in the house from the institution at future times.

During the term of this partnership the individual pays rent for living in the house in proportion to his/her share ownership of the house. The institution's share of the rent goes to the institution and the individual keeps his own.

   Only members of Ansar Personal Loans Ltd may apply
   Member needs to provide at least 20% towards purchase price
   House ownership shared by member and AHL
   Contract terms between 5 and 15 years
   Residential properties only (no commercial properties)
   AHL finances freeholds and leaseholds (with more than 70 years lease remaining at the end of AHL contract)

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