A halal mortgage calculator works out one monthly figure made of two parts: rent on the share of the home the provider still owns, and an acquisition payment that buys a slice of that share back. Because rent is charged on a shrinking share and the acquisition payment grows to keep the total level, the result matches a conventional repayment formula at the same rate and term. On Gatehouse Bank's published two-year fixed rental rate of 5.68% at 80% finance to value, a £250,000 purchase costs about £1,250 a month over 25 years, £350,000 about £1,750 and £450,000 about £2,250. No calculator includes fees, insurance or the rent review after the fixed period. Run your own numbers on the HalalWallet mortgage calculator once you know how the figure is built.
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The payment formula in words
A diminishing musharakah Home Purchase Plan starts with the provider and you owning the property in proportion to the money each put in. If you pay a 20% deposit, you own 20% and the provider owns 80%. Each month you pay two things. The first is rent for living in the provider's 80%, calculated as the rental rate divided by twelve and applied to the pounds the provider still has in the property. The second is an acquisition payment, which transfers a small part of the provider's share to you. Next month the provider's share is smaller, so the rent is slightly lower, and the calculator raises the acquisition payment by the same amount so the total stays constant through the fixed period. The HPP structure explainer covers the legal documents behind this; here we stay with the numbers.
The level-payment arithmetic is the same annuity formula a conventional lender uses, which is why Offa's FAQs state that a rent plus acquisition product is the Sharia-compliant alternative to a conventional repayment mortgage. The inputs are the finance amount (price minus deposit), the rental rate, and the term in months. Gatehouse states that its Home Purchase Plans run from a minimum of five years to a maximum of 40, and that the Rent Only option (the halal analogue of interest-only) is currently unavailable to new customers, so every new Gatehouse plan is acquisition and rent. The difference from a conventional mortgage is in what the two components legally are, not in how large the monthly figure is.
Three worked examples on Gatehouse's published rate
The figures below use Gatehouse Bank's UK resident Home Purchase Plan fixed for two years at up to 80% finance to value, which carried an initial rental rate of 5.68%, a £499 product fee and a £149 application fee on its products page on 18 September 2026, with a follow-on Standard Variable Rate of 7.25%. Each example assumes a 20% deposit and a 25-year term on an acquisition and rent basis. We also show the first month's split between rent and acquisition, the balance left after the 24-month fixed period, and what the payment would become if that balance reverted to the SVR. These are arithmetic illustrations from published rates, not quotes; a Decision in Principle from Gatehouse Bank is the only way to know what you would actually be offered.
| Purchase price | Finance (80%) | Monthly payment | Month 1 rent | Month 1 acquisition | Balance after 24 months | Payment at 7.25% SVR |
|---|---|---|---|---|---|---|
| £250,000 | £200,000 | £1,250 | £947 | £303 | £192,316 | £1,434 |
| £350,000 | £280,000 | £1,750 | £1,325 | £424 | £269,242 | £2,007 |
| £450,000 | £360,000 | £2,250 | £1,704 | £546 | £346,168 | £2,581 |
Two things stand out. First, in the early years roughly three quarters of each payment is rent, which is the honest answer to the question of how fast you build equity: slowly at first, then faster. Over the two-year fixed period on the £250,000 example you pay about £29,994 in total and acquire about £7,684 of additional share. Second, the jump to the SVR is large. On the same example the payment rises from £1,250 to about £1,434, an increase of 15%, unless you switch to a new fixed product before the fixed period ends, which Gatehouse's existing customer pages allow. Our cost comparison with conventional mortgages runs the lifetime numbers.
How the deposit and term move the figure
The deposit changes two things at once: the finance amount and the rate band. On the £250,000 example, a 5% deposit means £237,500 of finance, and Gatehouse's 95% product carried a higher rate of 6.78% with a £999 fee, so the monthly payment rises to about £1,645, not the £1,484 you would get by scaling the 80% figure. Term works the other way. Stretching the £200,000 finance from 25 to 30 years cuts the payment to about £1,158 a month but adds five years of rent. Choosing the five-year fixed at 80% (5.76% on the day) instead of the two-year gives about £1,259 a month, £10 more for three extra years of certainty.
| Scenario on £250,000 purchase | Finance | Rate used | Monthly payment |
|---|---|---|---|
| 20% deposit, 2-year fixed, 25 years | £200,000 | 5.68% | £1,250 |
| 20% deposit, 5-year fixed, 25 years | £200,000 | 5.76% | £1,259 |
| 20% deposit, 2-year fixed, 30 years | £200,000 | 5.68% | £1,158 |
| 5% deposit, 2-year fixed, 25 years | £237,500 | 6.78% | £1,645 |
What each provider's calculator asks you for
The online tools differ in what they request, and arriving with the right inputs saves a second visit. Gatehouse's How much will it cost me calculator asks for the purpose of the finance (home purchase or buy-to-let), the total amount of finance, the agreement type (acquisition and rent, since rent only is unavailable to new customers) and the finance term, then lists matching products with their rates and fees; a separate How much finance can I have tool handles affordability. StrideUp's rates page asks for the property value, the deposit, a two or five year fixed term and a term length between five and 40 years, then shows the estimated payment for the fixed period and the product fee, which was £1,249 on the day. Offa's monthly payment calculator asks for the property value and the finance required and warns that results depend on finance to value, product and application type. Al Rayan Bank publishes no calculator for new UK applicants because its Premier Home Finance rate is negotiable.
| Provider | Inputs requested | What it returns | Published rate on the page |
|---|---|---|---|
| Gatehouse Bank | Purpose, finance amount, agreement type, term | Matching products with rental rate, fee, FTV | Yes, full product table |
| StrideUp | Property value, deposit, 2 or 5 year fix, term 5 to 40 years | Estimated fixed-period payment, product fee £1,249 | Only via the calculator |
| Offa | Property value, finance required | Representative monthly payment | Yes, HPP product list 6.44% to 7.55% |
| Al Rayan Bank | None for UK residents | Premier Home Finance by negotiation | No |
The costs no calculator includes
Every calculator produces the rent plus acquisition figure and nothing else. Gatehouse's product pages state that the product fee is payable on completion and deducted from the finance amount, that valuation fees and legal fees also apply, that an Account Settlement Fee is payable at the end of the plan or on earlier settlement, and that fees cannot be added to the finance amount. The bank's FAQs confirm suitable buildings insurance is a condition of the finance and recommend your own Homebuyers Report or Building Survey because its valuation is for the bank's purposes only. Stamp duty is charged once on the full price, as our stamp duty guide explains. None of these appear in the monthly figure, and together they can add several thousand pounds to the first year.
- Application fee: £149 at Gatehouse, charged up front.
- Product fee: £499 or £999 at Gatehouse depending on finance to value, £1,249 at StrideUp, £499 or £999 at Offa, deducted from the finance at completion.
- Valuation fee for the provider's report, plus your own survey if you want one.
- Legal fees for conveyancing; Offa notes one solicitor acts for both you and Offa.
- Buildings insurance from the day of completion, required by every provider.
- Account settlement fee when the plan ends or you refinance away, which Gatehouse lists in its Tariff of Charges.
- Early redemption charges if you overpay more than the free allowance during the fixed period (Gatehouse allows 10% a year, then charges 2% in year one and 1% in year two on its two-year products).
How a rent review changes the monthly figure
During the fixed period the rental rate does not move. When it ends, the rate reverts to the provider's variable rate and is reviewed periodically. Al Rayan's HPP support pages, which still apply to its existing customers, describe quarterly rent reviews in March, June, September and December for plans on a variable or discounted variable rental rate, and explain that a Bank of England base rate change feeds through at the next review. Gatehouse's follow-on rate is its Standard Variable Rate, 7.25% on 18 September 2026. On the £350,000 example above, the balance of about £269,242 after two years would cost about £2,007 a month at that SVR against £1,750 during the fix. The practical rule is to diarise the end of the fixed period three months ahead and request a product switch, which both Gatehouse and Al Rayan allow once the fixed period has expired.
Sanity-checking against a conventional repayment figure
Because the level-payment formula is identical, a conventional repayment mortgage of £200,000 at 5.68% over 25 years would also cost about £1,250 a month. That is the correct sanity check: if any halal calculator gives you a number materially different from a conventional calculator fed the same finance amount, rate and term, one of the inputs is wrong, usually the term or the finance to value band. The comparison that matters is between the rental rate you are offered and the interest rate a conventional lender would offer at the same loan to value, plus the difference in fees. Our cost comparison article does that for the whole market; the home financing hub lists every provider's current products.
Who should use which calculator
A buyer with a 20% deposit and a straightforward income should start with Gatehouse's calculator, because it is the only one that shows the full product table with rates and fees without an enquiry, and the 80% rate of 5.68% was the lowest published in the market on the day. A buyer with a 5% to 10% deposit should run both Gatehouse's 95% product and Offa's, and then StrideUp for its 10% deposit route, remembering that StrideUp's rate appears only inside its tool. Anyone whose income multiple is the constraint should run Offa's eligibility calculator, since Offa states it accepts up to seven times income. Whatever the tool says, add the fees, insurance and stamp duty before you decide, and budget for the SVR figure, not the fixed one, in year three. Facts checked against gatehousebank.com, strideup.co, offa.co.uk, alrayanbank.co.uk on 18 September 2026.
Frequently asked questions
How is a halal mortgage payment calculated?
As rent on the provider's share plus an acquisition payment that buys part of that share, set so the total stays level through the fixed period. The arithmetic is the standard annuity formula using the finance amount, the rental rate and the term. On Gatehouse's published 5.68% two-year fixed rate, £200,000 of finance over 25 years gives about £1,250 a month, with about £947 of the first payment being rent.
Is a rental rate the same as an interest rate for calculation purposes?
For the monthly arithmetic, yes: a rental rate of 5.68% and an interest rate of 5.68% produce the same level payment on the same finance and term. Legally they are different, since rent is a charge for using the provider's share of a property you co-own rather than a charge on borrowed money. Offa's FAQs make this point, explaining that providers quote percentages so customers can compare with conventional lenders.
Does Gatehouse Bank have a mortgage calculator?
Yes, two. The How much will it cost me tool asks for the finance purpose, the amount of finance, the agreement type and the term, then shows matching Home Purchase Plan products with rates and fees; the How much finance can I have tool estimates affordability. Rent Only plans are unavailable to new customers, so results are on an acquisition and rent basis. The products page also lists every current rate, fee and finance to value band.
What does a halal mortgage calculator leave out?
Fees, insurance, tax and the post-fix rate. Gatehouse's pages list an application fee, a product fee deducted at completion, valuation and legal fees and an account settlement fee, and require buildings insurance. Stamp duty is paid once on the full price. The calculator also shows only the fixed-period payment; at Gatehouse the follow-on Standard Variable Rate was 7.25% on 18 September 2026, which would raise the payment materially.
How much would a £350,000 house cost with a halal mortgage?
With a 20% deposit of £70,000 and £280,000 financed at Gatehouse's published two-year fixed rental rate of 5.68% over 25 years, about £1,750 a month during the fixed period, of which about £1,325 is rent in month one. After two years the balance would be about £269,242 and at the 7.25% Standard Variable Rate the payment would be about £2,007, so a product switch at that point matters.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Why does the payment jump after the fixed period?
Because the rental rate reverts from the fixed rate to the provider's variable rate, which was 7.25% at Gatehouse on 18 September 2026 against fixed rates between 5.53% and 6.78%. Variable plans are then subject to periodic rent reviews; Al Rayan's support pages describe quarterly reviews that pass through Bank of England base rate changes. Switching to a new fixed product as the old one expires avoids the jump.
