01 / 37 · The House · Exit
Overpay, settle, leave.
On a diminishing musharakah, an overpayment is a purchase of extra units. Early settlement is a purchase of the rest. If the price of those units is a penalty formula, you have found the ERC.
The Mizan desk · 7 September 2026 · 9 min
Conventional overpayments reduce principal. Islamic overpayments, if the plan is real, buy more of the house. The facility letter should say how many units a lump sum purchases, at what price, and whether there is a notice period. If extra money just ‘reduces the balance’ with no sale, the partnership is already sliding toward a loan.
Ask for the remaining units in pounds. A vibe is not a schedule.
The settlement price
Early settlement is where a lot of ‘Islamic’ products quietly rebuild an early-repayment charge. A sale of remaining units at a disclosed price is lawful work. A formula that makes you pay the bank’s lost profit on the coupon they were not supposed to be charging is the old product in a new typeface.
Gatehouse’s September 2026 refinance range advertised no product or application fee. That is not the same as a clean unit price on settlement. Read both. Get the schedule in sterling for year 2, year 5, year 10. If the broker cannot produce it, you do not have an exit. You have a hope.