http://www.natwest.com/business/products/borrowing/longer-term/mortgages/islamic-commercial-property-finance.ashx#tabs=section1

Wonder how much they sell it on for?  Same as the interest would have been, Ill bet.

And no inflation as well ?

Not quite, they bundle up what is effectively interest and add it to the price as cost plus price. Effectively its interest added to the price of the house as a set lump sum.

QuoteJointly, we will agree the cost-plus price for the property. This will take into account the price you agree with the seller, the deferred nature of the sale and the cost of our services. This price will be finalised when the contract is concluded

its worth remembering, over a mortgage term you pay back about twice as much as the house cost.

A £100k mortgage @ 6% & a 200k mortgage @ 0% are both around £650 a month in repayments.

over 25 years, the 100k mortgage would have you paying back £195k

obviously theres pros & cons

tbh... its completely pointless - theyre just messing around with cashflows so someone can dodge religious rules on a technicality

sort of like US teenagers taking it up the ass so they can keep their virginity/not have sex before marriage etc....