Compare Mortgage Rates from Nomo Bank Against the Market

About Nomo Bank

Nomo was created to solve a specific problem: it has historically been very difficult for non-UK residents (especially from the Middle East) to open UK bank accounts or get mortgages due to strict "red tape."

Nomo uses technology to verify identity and creditworthiness using data from your home country (e.g., Kuwait or UAE), allowing you to bypass the need for a UK credit footprint.

As an Islamic bank, all its products are Sharia-compliant. They do not charge "interest" (Riba). Instead, they use a structure called Murabaha (for property) or Wakala (for savings), which involves buying and selling assets at a profit.

Mortgage & Property Finance Products

Nomo’s lending is focused on UK property finance for GCC Residents (Kuwait, UAE, Saudi Arabia, Bahrain, Qatar, Oman) and UK expats.

• Residential Property Finance (Home Purchase):

  • Structure: This is a Commodity Murabaha product. The bank buys the property and sells it to you at a higher price (which includes their profit), which you pay back in monthly instalments.

  • Purpose: For buying a home to live in (e.g., a holiday home or a base for children studying in the UK).

  • LTV: Typically up to 70–75% Finance-to-Value (FTV).

• Rental Property Finance (Buy-to-Let):

  • Structure: Designed for investors. The monthly payments are "profit only" (similar to interest-only), keeping monthly costs lower.

  • Portfolio Landlords: They accept experienced investors.

  • Refinance: You can refinance existing UK property to release cash or move to a Sharia-compliant product.

• Key Features:

  • Digital Process: Everything is done via the app. You do not need to visit a branch in London.

  • No UK Footprint Needed: They can assess your affordability based on your employment and credit history in your home country.

  • Joint Applications: Up to 2 applicants are allowed.

Banking & Savings Products

Unlike many specialist lenders, Nomo acts as a full daily bank for its clients.

• Current Accounts: You get a UK account number and sort code (GBP), plus multi-currency accounts in USD and EUR.

• Transfers: Fee-free international transfers to Nomo accounts and competitive rates for other transfers.

• Fixed Term Deposits: Sharia-compliant savings accounts (using the Wakala structure) that offer "expected profit rates" rather than guaranteed interest.

Pros and Cons of Nomo Bank

Here is a balanced overview of choosing Nomo for your UK banking.

Pros:

• Sharia-Compliant: A genuine Islamic banking solution fully regulated in the UK, certified by a Sharia Supervisory Board.

• Access for GCC Residents: It opens the door to the UK property market for buyers in the Middle East who would otherwise struggle to get a mortgage from a high-street bank like HSBC or Barclays.

• Speed: As a digital lender, they aim to provide Agreements in Principle (AIP) much faster than legacy private banks.

• Currency: The ability to hold GBP, USD, and EUR in one app is excellent for international travellers.

Cons:

• App-Only: There are no branches and no web banking. If you lose your phone or the app has a glitch, you can feel cut off.

• Customer Service: Online reviews frequently cite frustration with "frozen" accounts during security checks and slow response times from the support team compared to premium private banks.

• Strict Property Criteria: They are selective about the properties they finance (e.g., usually England & Wales only, minimum values often £150k+ or higher in London, no studio flats).

• Cost: Sharia-compliant finance can sometimes be more expensive than standard conventional mortgages, and there may be higher setup fees involved.

Customer Service and Reviews

Nomo has a mixed reputation, which is common for "fintech" disruptors.

• App Store / Play Store: Generally high ratings (around 4.5/5), with users praising the slick interface and ease of opening an account from Kuwait or KSA.

• Trustpilot: Scores are often lower (mixed 3 to 4 stars). Positive reviews praise the concept and onboarding speed. Negative reviews often focus on the bank's strict compliance checks, which can lead to accounts being blocked or transfers delayed while they ask for "Source of Funds" documents—a necessary evil of international banking.

How to Apply

1. Download the App: Nomo is app-based. You must download the app (iOS or Android) to start.

2. Scan ID: You will scan your passport and take a selfie.

3. Property Finance: Once your account is open, you can apply for property finance within the app.

• Note: For property finance, it is often still wise to speak to a specialist International Mortgage Broker. They can tell you if Nomo is the best option or if another lender (like Gatehouse or Al Rayan) might suit you better.

Get started here to book a free, no-obligation chat with a broker who specialises in Nomo’s product range, can compare it with the alternatives and help you apply for the best deal.