The Islamic Bank of Britain (IBB) released a new product in 2012 called a Home Purchase Plan (HPP). This product allows individuals to invest over the long term in a mortgage equivalent financing deal. According to their publicity materials the Home Purchase Plan consists of two components:

1. Co-ownership agreement. IBB will agree to sell its share of the property to you at an agreed monthly amount over a fixed period (known as the term). Your share in the property increases with every monthly payment made towards acquiring IBB’s share in the property.

2. Lease agreement. IBB will then agree to lease its share in the property to you for which you will pay a monthly rent.
Your monthly HPP payment is therefore made up of two elements: an acquisition payment and a rental payment. As you make your monthly payments, your share in the property increases as IBB’s share gets smaller, and although your monthly payments remain constant (subject to quarterly reviews) the rental payment element will decrease while your acquisition payment element increases. Rent is reviewed every three months in March, June, September and December. The rent rate may increase, decrease or stay the same at each rent review.
Explain this product in terms of a normal mortgage. Assume the interest rate for similar risk mortgages is 4.19 per cent. Construct a home purchase plan so that it has the exact same cash