Shariah-compliant commercial mortgage

You don't need to have a current account with us in order to benefit from this product.

ABT Finance also meets the legal requirements for commercial property purchase in England, Scotland and Wales.

Main benefits

• No interest - unlike other commercial mortgages, there is no interest on this funding solution
• 25 year maximum term - and a minimum term of one year give you the flexibility to choose a suitable repayment period
• Payments are fixed for the term - so your business can budget for the long term
• Minimum advance of £26,000 - with no maximum amount

Speak to the specialists

We have a nationwide team of people who are specially trained in ABT Finance - so you always know you are getting the right information.

• Show me how the Shariah-compliant mortgage works

• Select your commercial property
• Agree a purchase price with the vendor
• Approach The Royal Bank of Scotland with details of your proposed purchase
• We review the terms of the contract you have agreed with the vendor
• We give you a decision in principle, saying if we are prepared to assist in the funding of the commercial property

• Working with you, we agree a cost-plus purchase price for the property. This is a price for the deferred sale and our services. The price will be finalised on the day the contract is completed and signed

• The Royal Bank of Scotland buys the property - and your business in turn buys the property from us, in accordance with the Islamic Murabaha structure
• You pay the deposit on exchange, then pay the balance of your initial contribution on completion
• Regular payments will start after completion

Please note that ABT Finance cannot be used for commercial property development, or residential property which will be owned or occupied by members of your family.

• Show me more on Shariah law

Shariah law is interpreted on a case-by-case basis by recognised scholars of Islam. It forbids usury, including payment or receipt of interest on monies borrowed or invested. As such, a traditional commercial mortgage would not be a Shariah-compliant way to fund a property purchase.

How we created this product

We have taken the advice of a Shariah Supervisory Board in offering Royal Bank of Scotland ABT Finance.

ABT Finance adopts the Murabaha principle, one of the more common methods of providing Islamic finance. Practitioners of Islamic banking and scholars of Islamic law consider the Murabaha principle to be a suitably Shariah-compliant method for the purchase of property in the UK.

Questions to ask

You need to ensure that you are satisfied with all of the terms of Royal Bank of Scotland ABT Finance, from a business and personal perspective.