The FCA has granted permission for Try Adviser Network to arrange Shariah mortgages.

The network of mortgage brokers operates alongside a direct-to-consumer service under the Try Financial brand.

Its appointed representatives have reported growing interest in home purchase plans, which are a Shariah-compliant alternative to a mortgage.

Home purchase plans are structured differently to conventional mortgages because interest payments are not allowed in Islamic finance.

A Sharia purchase plan has some elements in common with the shared ownership model, as the bank and customer buy the property jointly.

The customer pays rent on the share owned by the bank plus an additional amount each month so that gradually over time they acquire the property.

Try Adviser Network has been working with Shariah finance provider Gatehouse Bank and its sales director Roger Evans to develop its proposition.

Gatehouse also offers buy-to-let purchase plans which are Shariah compliant mortgages for landlords.

Try managing director Martin Swann says: “We regularly speak to our appointed representatives to find out what they need to expand their businesses, and requests for home purchase plan permissions have grown considerably in the past year.

“We have worked closely with Gatehouse Bank for several months, using their knowledge and experience to shape our proposition. 

“We see them as central to our home purchase plan offering in the years to come.

“We are delighted to have had permissions granted by the FCA, growing the number of customer journeys we can offer under the broad roof of Try Financial. 

“It has always been our intention to deliver as much as we possibly can to advisers.”

Evans adds: “Try Financial is a valued business partner of Gatehouse Bank and I am delighted that they have taken the initiative to gain the home purchase plans permissions with the FCA.

“This will allow their intermediaries to provide an even better level of service and support to their customers and meet the growing demand for home purchase plans in the residential property market head on. 

“This will be in addition to offering an ethical finance solution for landlords in the form of buy-to-let purchase plans, which do not require these consumer-focused permissions.”