The partnership will see the West Bromwich referring potential customers to the HSBC. The bank is expecting to sign up some 50 IFAs and brokers, and is currently meeting with intermediaries who have expressed interest over the past twelve months.
HSBC is hoping to achieve a geographical spread across key Muslim areas. The bank will pay commission based on a percentage of the drawdown for any leads generated.
The Amanah home finance scheme means that the bank owns the property and leases it back to the customer over an agreed term. The customer makes monthly payments made up of rent and payments towards the purchase price. In Islamic terms the rent is not another name for interest; it is seen as a fair payment for use of the property rather than a charge for borrowing money.
Norman Hasan, UK head of HSBC Amanah, said: “We hope to generate a large number of new customers a year through IFAs. Their deep links with the community means they will be vital to spreading the word about Shariah-compliant products and introducing customers who might not have had previous experience of the bank.”
Ben Thompson, sales and marketing director at Clear Cut Mortgages, said: “The Islamic market is on the increase in both the consumer and intermediary market.”
James Cotton, mortgage specialist at London & County, said: “There have been a few moves into the Islamic market lately and it is appealing for Muslims looking at finance deals. Whether it means that HSBC now go further into the intermediary market remains to be seen.”
