Islamic Mortgage/HPP query

السلام عليكم ورحمة الله وبركاته

@Mufti_Faraz_Adam @Mufti_Billal

I pray you are in the best of health.

The recent base rate rise has brought a question to mind.

Gatehouse Bank’s website mentions the following about the rental rate - “Rental rates are calculated to reflect the shares you and we own in the property.”

With this in mind, I would be grateful if you could provide any insight on the following:

  1. how are the rental rates calculated? This may be wrong, but my understanding was that it is based on average rental prices.
  2. if these purchase plans are meant to be interest free, why do the rates change as the base rate changes?
  3. due to the fact that the rates do follow the base rate (and only really increase/decrease when the base rate does the same), is this not simply a matter of changing the words in the contracts to circumvent shariah?

I understand the concept of 2 separate contracts as the basis of shariah compliance, however, at a high level the HPP mechanism does seem to mirror the conventional approach. Although not entirely convinced by the HPPs currently available on the market, I do accept that it is the better option and have held off purchasing through high street banks for this reason. My query is purely for understanding and, to try and quell doubts.

جزاك الله خيرا

والسلام عليكم ورحمة الله وبركاته