Furthermore, these mortgages have been deemed acceptable and have been approved by leading Islamic scholars in finance. Within Shariah finance methods, the Islamic lender will always own the property at some point and later return this to the purchaser . You can see all the UK Islamic mortgage products available today on our comparison page. For purchasing, refinance and equity release. Copyright 2020 Islamic Mortgage UK - All Rights Reserved. All you need to do is complete our short online form! A 'Salaam-u-Allaikum. From 1st July reverts to IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. Elite Law Solicitors is a trading name of Elite Law Solicitors Limited, Registered in the UK, Registration Number: 09050473 Registered Office: Equity House, 57 Hill Avenue, Amersham, Buckinghamshire, HP6 5BX. Halal Options is the trading name of One Option Finance Ltd. We offer Independent advice on halal, mortgage alternative Property Purchase Plans. Minimum deposit is 30% of the property value. In a nut shell how does an Islamic mortgage work for different types of purchases? This rent will not contribute to the loan repayment. The buy and offering cost and the net revenue must be unmistakably expressed at the season of the deal assertion. We make sure that all our information is up to date, provided in an easy to understand language; whilst at the same time making the whole decision making process as simple and easy to manage as possible. Rental rate fixed until 30th June 2015. Shariah Finance is based on the principle that money is not generated from money i.e. One of the most serious prohibitions in our faith is the use of interest. Islamic mortgages are available from a number of banks in the UK. We would love to hear from you, please tell us: how can we improve it? What's the difference between A 3.89% interest mortgage vs 3.89% Halal Mortgage? Administration fee of £399. In addition, other factors can make HPPs slightly more expensive than a traditional mortgage. There is an agreement of shared ownership – this means all parties will own a respective property share which is equal to the amount they contribute towards the property. Help to Buy extended to include Islamic Mortgages, Help to Buy mortgage guarantee scheme extended to include providers of Home Purchase Plans. We disagree as the threshold for “necessity” in Islam is really high. An Islamic mortgage / halal mortgage / home purchase plan is a financial product designed to help Muslims purchase property without borrowing money. Why Expats Should Consider a UK Mortgage. A home purchase plan offers you a Shariah-compliant alternative to a mainstream mortgage, with competitive rates and an ethical approach. The outstanding balance will need to be paid once the term has ended. If you agree with us then obviously going for a halal mortgage over a conventional mortgage makes complete sense. (£399 IBB admin fee). Islam forbids interest-bearing loans, so Muslims may prefer to seek a halal alternative when purchasing a property. If you are looking to buy a house with a Shariah Compliant Mortgage you have come to the right place! The site provides the visitor with FREE information on Islamic finance, compares relevant products at a glance, and put you directly in contact with the financial institution / lender. The bank gives ownership to the purchaser at the end of the term of the agreement and purchaser will pay a lump sum at the end to take ownership after having paid rent during the term.. We make sure that all our information is in an easy to understand language; whilst at the same time making the whole process of direct enquiry to the Lender / Bank as simple and easy to manage as possible. Murabaha is a type of halal mortgage offer where the expense of the products to be sold, and also the benefit on the deal is known to the two gatherings. Islamic Mortgages .co.uk information website is the leading resource for all those looking for Islamic Finance solutions. Read on to find out how Islamic mortgages work. Islamic - or Halal - finance is a way of spreading the cost of a new or used car that's compatible with the faith. There are however those who claim that mortgage is not haram and here is why: Most Islamic religious teachers argue that using a standard mortgage to purchase a property is Halal, hence acceptable. FCA #: 4749334 | Company #: 5321285 HSBC is the only high street bank to offer an Islamic mortgage service, but smaller specialist banks such as Ahli United Bank, Alburaq, Islamic Bank of Britain have Sharia products. Inshallah you will find what you are looking for. Years. It is against Islamic law to receive or pay interest, which has traditionally been a big problem for Muslims living in the UK, as it meant that only the very wealthy were able to buy homes because they had the ability to purchase properties outright. 70 likes. Islamic Mortgage UK has partnered with industry leading Sharia Compliant Finance providers to provide you with Halal mortgages, finance products and services within the UK. > Islamic Mortgages / Halal Mortgages. What is the source of the money being lent? 40,000 Muslim families/households take out conventional mortgages every year (new mortgages and remortgages); of these, Muslims pay each year approximately £4 billion in interest on house mortgages alone. FSA Reports steady growth for Islamic mortgages. Islamic Mortgage UK has partnered with industry leading Sharia Compliant Finance providers to provide you with Halal mortgages, finance products and services within the UK. Mortgages for Muslims is an Islamic Mortgage Intermediary offering sharia compliant Islamic Mortgages. However, now that genuine Sharia compliant Mortgages (approved by leading Islamic Finance Authorities and scholars) are available, these options must be considered in order to live our lives in a manner which is pleasing to our Creator. Shariah-compliant mortgages. Rental Rate of 5.49%, which is base rate + 4.99% margin. The purchaser’s share in the property will increase with each payment and therefore, the banks share will decrease. Some Islamic lenders will offer a rent only option. What else would you like to see on this web site? We currently provide tailored home finance solutions for clients based in the UK or overseas, in accordance with Islamic Shari’ah, looking to purchase a property for private residence or for investment purposes in the UK… Islamic Mortgages .co.uk is the UK's most recommended website on islamic mortgages, which provides details of all the current Muslim, Halal, Shariah compliant mortgage / finance products available within the UK. This may be multiplied many times to include interest paid out in business loans, personal loans, overdrafts, hire purchase etc. In both instances described, the full property ownership is given to the customer once the agreement has ended if all outstanding balances have been cleared. To get the best experience when using our website we recommend that you enable JavaScript in your browser. interest. So let’s say you buy a house for £100,000, and pay £20,000 as a deposit and £80,000 is contributed by the bank. Very simply an Islamic Mortgage is a term used to describe a sharia compliant method of purchasing a property. Now that you know what your likely monthly payments for a set amount of finance might be, you should consider how much you can comfortably afford each month. Helping you purchase your residential or investment property the Halal way It should be noted that Islamic banks will often require a larger deposit than a mainstream UK bank or building society. We help you purchase your residential property the Halal way. Up to 80% finance offered on property value of £100k or more. They are complex products and there can be a big difference in what firms offer, so consider getting professional financial advice to help you decide. These conventional methods use interest at their core, to calculate the cost of borrowing. The first port of call in these conversations is often “what about a Shariah-compliant mortgage?”. The method used to make the purchase avoids all things which are prohibited within Islam such as the use of interest, speculation, uncertainty etc. What is an Islamic Mortgage? Why continue to do this, when there are real Shariah compliant alternatives in the UK; we can help guide you through thus and inshahallah give you a ‘riba’ free peace of mind. As you will be aware there are many verses in the Holy Quran (e.g., 2:276, 2:278, 3:130, 4:161 and 30:39) and Ahadith (Prophetic Narrations) that clearly prohibit the use of Interest. [more...], GCC countries set to see growth of islamic mortgages, GCC countries are set to see significant growth in the Islamic mortgage sector, as, with 65% of the population under the age of 30 demand for affordable housing is predicted to soar. Luckily for … Rental rate discounted until 30th June 2015. Our Islamic … However, during the mortgage term, the purchaser pays rent which is how the bank will make their profit. Reverts to IBB Buy To Let Finance Rental Rate on 1st July 2015. Minimum finance of £70,000 - maximum £750,000. Islamic Mortgage Uk, Sutton, London. The ownership in these is also based on each party’s contribution to the property purchase. Shariah mortgage schemes generally fall into one of two categories: The key differences mentioned above distinguish these mortgages from the conventional interest bearing mortgages. Gatehouse Bank has launched a Sharia-compliant mortgage, known as a home purchase plan, to challenge the few lenders already offering Sharia home finance in the UK. This purchase is done in a way which avoids interest, speculation and uncertainty – factors of traditional mortgages which are prohibited within Islam (Haraam). The fact that you are visiting this website suggests you are aware of the prohibition for a Muslim to give or receive interest (Riba). However, if a profit is made as a result of a transaction between the vendor and buyer in which ownership is transferred, then this is acceptable. The second key reason used by Camp A, is that there is a necessity to own a home. Choice of repayment terms available from 3 months to 25 years. A halal mortgage doesn’t seem very halal and I’ve heard its quite controversial – but my research in that is lacking,” said 36-year-old, Shoohada Khanom. Any of the Shariah banks we work with will be glad to provide you with the details of their Shariah compliance upon request. For or against Islamic mortgages - have your say! A number of leading scholars, Islamic writers and finance experts have produced various pieces of work outlining their arguments. Islamic Mortgages from Mortgages for Muslims Call us on 0845 5390053 Each company has its own mortgage model, pricing structure, geographic area, eligibility requirements, and application process, so the consumer is advised to engage in independent research. Available to all customers regardless of faith. Landlords of any faith looking for ethical and Sharia compliant... Discounted from IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. Can I apply for right to buy under an Islamic Mortgage? Your calculated monthly payments: £0. We can also arrange for a free quote for Islamic Insurance and Islamic Conveyancing. Administration fee of £399. JavaScript is disabled in your browser. Al Rayan Bank is thought to be the UK’s biggest Islamic finance provider. You might be wondering what is an “Islamic Mortgage”? We believe in listening to all views regardless of whether you are for or against the concept of Islamic Mortgages. Rental Rate of 5.49%, which is base rate + 4.99% margin. You can see all the UK Islamic home mortgage items readily available today on our contrast page. The Al Rayan Bank (formerly Islamic Bank of Britain) and UBL UK (United Bank Limited) are the main providers of Islamic mortgages in the UK, however other providers may also offer Sharia-compliant mortgages. If you’re looking for an Islamic mortgage, one which is halal (lawful), you can apply for one through a specialist provider. AUB (UK) has been offering Shari’ah compliant home purchase plans since 1997. [more...], Islamic Bank of Britain launches Sharia compliant B2L mortgage alternative, Islamic Bank of Britain has entered the buy-to-let mortgage market with the launch of its Sharia compliant buy-to-let purchase plan. It offers access to finance, while adhering to Islamic restrictions on lending with interest and speculating.. What changes would you make to this website? You may be wondering what is an “Islamic Mortgage”. Ijara Islamic home mortgage The ijara home loan is essentially the decreasing musharakah, apart from there is no “lessening” going on. This Islamic mortgage website provides the visitor with FREE information access, compares relevant Islamic Banking products at a glance and puts you in direct contact with all Islamic Lenders at the click of a button. An Islamic mortgage, or halal mortgage, enables you to buy a house in compliance with Sharia law. Evidently, we need to do our best to live in accordance with the teachings of Islam. (Range of terms available to you will depend upon your circumstances). We are authorised and regulated by the Financial Conduct Authority. Halal Mortgage Uk It is recommended for financing major one-off expenses, including home renovations or repairs, medical bills, repayment of credit card debt, or funding college tuition. This might sound like an excellent way to cut the cost of your car payments but the amount you borrow is more than the market value of the car, and so it's rarely … Want to know more about you rights, read the FSA fact sheet on Islamic mortgages (also known as Home Purchase Plans). Our mortgage calculators will help you understand what your mortgage may cost. How can I be sure that these Islamic mortgages are really Shariah compliant? Islamic mortgages have been in the mainstream market in the UK for some years but it can often be difficult to get to grips with sharia-compliant financial products, which can seem confusing. What do different 'Islamic schools of thought' say? Islamic Mortgages .co.uk is the UK's most recommended website on islamic mortgages, which provides details of all the current Muslim, Halal, Shariah compliant mortgage / finance products available within the UK.. and a member of our team will get in touch with you! Al Rayan Bank has the widest range of Islamic mortgage alternatives in the UK. Within a conventional mortgage, the lender will provide finance for the home and charge interest on this loan. The monthly payment will contribute to repaying the borrowed sum and the banks profit. In a conventional mortgage, the bank provides the finance to the purchaser on the condition that the amount borrowed (plus interest!) Buy to let Islamic mortgage for non UK residents. Rental rate discounted by 0.6% until 30th June 2015. Rental rate discounted until 30th June 2015. iscounted from IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. Rental rate discounted by 0.6% until 30th June 2015. We are authorised and regulated by the Financial Conduct Authority. Rather than the 5% or 10% often paid by first-time buyers, HPP agreements require around a 20% deposit. will be repaid over a set period of time. Your opinions are not only important to us but also to everyone visiting this website. In the past, Muslims living in the West have either decided to rent their homes, or taken out conventional interest-bearing mortgages due to the lack of Sharia compliant alternatives. The main reason to take out a home equity loan is that it offers a cheaper way of borrowing cash than an unsecured personal loan. Alternatively ownership will be passed on after the purchaser has agreed to pay for the property on a deferred basis over the term agreed upon, the repayments will cover the original cost of the property and the profit or rent which has been pre-agreed. [more...], Canada bankruptcy may hurt Islamic finance in N.America, The insolvency of an Islamic mortgage lender in Canada may hinder the growth of sharia-compliant finance in North America, where the industry has struggled to gain traction in the absence of a supp... There are a range of Islamic mortgage alternatives available, allowing buyers to get on the property ladder while being sharia-compliant. This will be done by the bank placing a legal charge on the property which simply means that if you fail to make regular payments, they are able to make a repossession without any issues. Finance amount £ UK residents UK expats Product type Finance period. Halal Options is the trading name of One Option Finance Ltd. We offer Independent advice on halal, mortgage alternative Property Purchase Plans. Islam is a way of life – not just a way of thinking! The bank has no ownership of the property, however, they will secure this loan against the property. Registration Number: 202 4497 34 We are authorised and regulated by the Solicitors Regulation Authority No: 617591. Administration fee of 1% of finance amount (minimum £995). We provide a comprehensive analysis of all Shariah Law compliant Islamic mortgage products available within the UK. The customer will then lease the part of the property that the bank owns and pay a monthly rental payment. Click LIKE & SUBSCRIBE to see more videos. Muslims are banned from earning or paying interest. [more...], Islamic finance - the lowdown on sharia-compliant money, Islamic products are available to regular savers, investors and homebuyers, but unlike standard deals they don't charge interest. From £500,000 to £3.5million. A mortgage is haram but there are specialist mortgages for those who practise Islam and these mortgages are halal. I Islamicmortgages.co.uk allows you to view a range of home finance product information, provided by all the lenders in the UK. At the end of the finance term, if all payments have been made, then full ownership of the property will be transferred to the customer. IslamicMortgages.co.uk allows you to view a range of Islamic finance amd mortgage products, provided by some of the leading Islamic financial institutions in the UK. Ijara Islamic mortgage; The ijara mortgage is basically the diminishing musharakah, apart from there is no “diminishing” going on. Sharia-law-compliant home purchase plans help you buy your home in a way not involving paying interest. The Islamic Lender will be the registered owner of the property. With a home purchase plan you buy the property jointly with us - your deposit is your stake, and we fund the rest. An Islamic mortgage is a Sharia compliant method of purchasing a property. [more...]. [more...], Muslim students call for Shariah student loans in 2012, The Governments new university fee system, which comes into place next year, will prevent Muslim students from participating in higher education in this country because it contravenes their religi... For business properties in England & Wales; for freehold and leasehold properties. Islamic Mortgage UK is the leading resource for all Muslims looking for Islamic finance solutions. Most importantly, seek advice from a real estate lawyer, accountant, and tax professional before committing to any purchase plan or signing any documents. You can use it just like a conventional mortgage to buy or refinance your home. Why UK Expats Should Opt For A Mortgage Broker; UK Property still a top investment choice for Expats and residents In Hong Kong; Falling Sterling Increasing Interest in UK Buy to Let Property; ... gambling or non-halal meat. ABC International, Ahli United Bank and UBL are the other UK-registered banks to offer home purchase plans. Administration fee of £399. FCA #: 4749334 | Company #: 5321285 Islamic mortgages. An Islamic mortgage on the other hand is quite different to this. Find out what you could borrow and what your payments will be today. :: You are here: Traditional mortgage is also based on the condition that the amount borrowed ( plus interest! the principle money... 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