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Property Finance

Sharia finance principles are derived from Islamic teachings and encourage ‘fair play’ that promotes fairer, more socially responsible ways of conducting financial affairs. Products and services that are Sharia-compliant are available to all and suitable for both Muslims and non-Muslims alike.

Sharia principles encourage trade and enterprise in order to create real prosperity for the benefit of the entire community. It achieves this in a method that is stable, transparent, and allows for an equitable distribution of risk and profit.

The following are some important differences between Sharia and mainstream finance:

• Finance and investments must not be used to support industries or activities that violate the principles of Sharia. Alcohol, tobacco, pork and non-halal meat production, gambling, adult entertainment, and arms production are among them.

• Money must be put to good use in order to make profit from a legitimate commercial or economic activity. It is illegal to pay or receive interest (making money from money).

We have a Sharia Supervisory Board (SSB) who oversee all of the bank’s activities to ensure top to bottom Sharia compliance. The SSB is appointed by the Board of Directors but reports to the bank's shareholders directly.

For financing products, Nomo uses Commodity Murabaha.

Commodity Murabaha involves Nomo facilitating a sale of metal commodities to you for the amount equal to the finance amount and bank profit-rate. This amount will be repaid on a deferred basis over the chosen finance period. You will take ownership of the metal commodity and consequently sell to a third-party. Nomo will take care of these procedures on your behalf.

No, Sharia-compliant products and services are available to everyone and are available for Muslims and non-Muslims alike.

Nomo Property Finance is a fully digital, Sharia-compliant property finance product.

We currently offer rental property finance for buyers in England and Wales (UK) who want to rent out a property to long-term tenants.

We've based Nomo Property Finance on traditional property finance offerings, and streamlined the application process where possible to make the entire process simple and stress-free for our customers. Here’s how we do it:

• We only ask relevant questions, and never ask for the same information twice.

• We keep you informed at every stage of the process from application, approval and completion, to funding your account with the finance amount.

• Our team is here to support you should you have any questions

At Nomo, we aim to deliver a property finance service that's fast, simple and transparent. We do everything digitally, which helps us to speed up and simplify everything we do.

Fast: In just a few clicks you can get an Agreement in Principle, allowing you to focus on the next stage of your property buying process, whether this is looking at properties or making an offer.

Simple: An easy-to-use app gives you property finance at your fingertips. No more paperwork and appointments to speak with your finance manager.

Transparent: Always know exactly how your application is progressing by checking in the Nomo app. You’ll be notified at every stage of the process.

Rental property finance is a Sharia-compliant buy-to-let mortgage alternative.

This type of property finance is for people looking to buy a property to rent out to long-term tenants as an investment, rather than to live in.

Nomo Rental Property Finance is profit-only, which means that the monthly payments will only pay off the bank's profit, not the finance amount itself. This amount will need to be paid off in full at the end of the repayment period.

Finance-to-value, or FTV, is the percentage ratio of the finance amount against the value of the property.

For example, if you ask Nomo for a finance amount of 350,000 GBP to purchase a property for 500,000 GBP, the FTV will be 70% (350,000 / 500,000 x 100 = 70%). This means you will need to provide a downpayment of at least 30% of the property value. In conventional mortgage terms, this may be referred to as loan-to-value or LTV.

The maximum FTV for each product is stated on the product pages, which you can find here.

Nomo Rental Property Finance is profit-only, which means that the monthly payments will only pay off the bank’s profits, not the finance amount itself. The amount will need to be paid off in full at the end of the repayment period

The follow-on rate is the rate that your finance will switch to once your initial fixed-rate period ends. All of our finance products automatically switch to a follow-on rate when your initial fixed-rate period ends. This will vary over the period of the finance amount and is set internally.

After your fixed-rate period ends, you have various options available:

• You can choose once more a product from our range of fixedrates with a new fixed repayment period

• You will automatically move to our follow-on rate. This will vary over the period of the finance amount and is set internally

• Alternatively, you could refinance to another provider

This is the amount you need to pay upfront yourself towards the purchase price of the property.

This is a report from your local credit bureau such as the Kuwait’s CiNet.

https://www.cinet.com.kw/en/home

The report contains information regarding your credit history and finance products you currently have.

If you’re a new customer, you will first need to download the Nomo app and apply for an account, which should take just under ten minutes. You can do this from your smartphone.

Once you’ve been approved, or if you’re an existing customer, click on the Property Finance section of the website to begin the application process.

Then follow these steps…

If you’re just researching properties:

  1. Get an Agreement in Principle in the Nomo app. This is a certificate showing an estimate of the amount you could receive in property finance and shows the property agent and seller you’re in a position to make a serious offer.
  2. Use the certificate as an indication of the finance amount that Nomo could offer to help you in your research and shortlist properties you could purchase with the help of Nomo Property Finance.

If you’ve made an offer on a property that's been accepted:

  1. Start a full rental property finance finance application in the Nomo app.
  2. Add details about yourself, your property finance needs and the property you would like to finance.
  3. Email us the necessary supporting documents
  4. Nomo will assess your application and make a decision
  5. When approved, you will receive your rental property finance finance offer from us. After you accept it, we will start the process of providing finance for you to complete the purchase of the property.

We’ll keep you updated at every stage of the process, and our app has plenty of helpful information to help you complete your application.

At Nomo, we aim to make decision on your application as fast as possible. Through our digital app, we look to deliver a service that is fast, simple and transparent.

Yes. The minimum and maximum amount of finance can be found on the product pages, which you can find here.

Yes, we consider self-employed applicants. Please see our eligibility criteria in more detail here.

The maximum FTV for each product is stated on the product pages, which you can find here.

Our products use '%' rates to show the bank profit rates. This is the percentage of the finance amount that you pay to Nomo as a fee.

The minimum and maximum amounts of finance available can be found on the product pages, which you can find here.

You will need to pay the outstanding finance amount and bank profit amount if you choose to pay the full amount in advance within the fixed rate period. If you choose to pay the full amount in advance during the follow-on period, you will need to pay the outstanding finance amount. An account closure fee of £240 will also apply to early payment

The cost of the rental property finance will depend on the amount of finance you receive, as well as your product preference. You can find more information on our product pages here, or use our finance calculator to help you get an idea of the costs.

You can also get an Agreement in Principle in the Nomo app to get an indication of the amount of finance that Nomo could offer and understand the costs associated with the finance.

Finance Calculator

To start a full application for Nomo Property Finance, you must have had an offer accepted on a property.

While you’re searching for properties, or if you’ve found a property that you would like to make an offer on, you can get an Agreement in Principle (AIP) which shows you the finance amount that Nomo could offer.

You can generate an AIP certificate in minutes in the Nomo app.

As a part of the full application, Nomo is required to run a valuation on the property that you're seeking financing for. We will instruct a professional valuation company to produce a report to assess whether the property is adequate as security for the finance arrangement you are applying for. This helps us understand if we're able to offer finance for the property.

It’s important to know that Nomo’s survey may not reveal defects in the property, and it’s important that you don’t rely on it in any way when deciding whether to go ahead with the purchase. We recommend you arrange a more detailed report in order to decide if the property is suitable for you.

When you buy a property in the UK, you may be required to pay tax such as the Stamp Duty Tax, Land transaction tax or income tax from your rental property.

For more information about the Stamp Duty Tax applicable to properties in England and Land Transaction Tax for properties in Wales, please refer to the UK government website.

There may be other taxes due or resulting from the purchase of your rental property and you should review your personal tax situation and the implications of owning the property with a tax specialist.

For us to complete the property finance transaction for you, Nomo will need to appoint its own lawyers to act for Nomo in agreeing the property finance documents. Nomo’s lawyers are separate to the lawyers who will act for you in this process. You will need to pay the fees for both sets of lawyers.

To start your property finance journey you will need to open a Nomo bank account as it allows seamless payment of the finance, ensures you’re easily able to stay on top of your payments, and allows us to keep you informed of all relevant info all in one app.

Applying for a Nomo account just a few minutes, and once we have your information we will only ask questions that are relevant, and never ask for the same information twice.

We do not provide advice but if you have any questions, our customer support team are on hand to help answer any queries and questions you may have.