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sharia law mortgages

Sharia Law mortgages, or Islamic mortgages, became widely available in the UK in 2002. Prior to this it was difficult for all but the wealthiest Muslims living in Britain to own a home, due to Islamic law forbidding the paying or receiving of interest.

There are two main types of Islamic mortgage – Murabaha and Ijara. In basic terms, both involve the lender purchasing a property and selling or renting it to the buyer at a slightly increased price, until the mortgage is paid in full and the buyer owns the property.

Islamic mortgages must also comply with various other aspects of Sharia Law. For example, the money used by the bank to purchase the property must come from activities deemed permissible by Islamic standards.

  • guide to sharia law mortgages

  • With the paying and receiving of interest forbidden under Islamic law, buying a home can be an obstacle for British Muslims. The rise of Sharia-compliant mortgages in the UK since 2002 has begun to ease the process.

    Home Purchase Plan - The Mortgage alternative
    • Sharia'a approved Home Purchase Plan
    • Market competitive - available to all customers regardless of faith
    • Rates start from 3.99%
    • Up to 80% finance offered on property value which must be over £150,000
    • Only £299 administration fee
    • Refinance deals - Free valuation and customer solicitors costs paid up to £800*
    • No penalty for lump sum payments and no early repayment charges
    • Minimum finance of £70,000 - Maximum £750,000. Exceptions considered.
    • Income from up to four people can be taken into account

    *Fee Assisted - If you decide to settle your Home Purchase Plan during the first 5 years you will be required to repay to the Bank the full cost of the solicitors and valuation fees incurred.
    Subject to status. Terms and conditions apply.

    Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

    Please click here for a FREE NO OBLIGATION QUOTE!