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. [more...]. 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. 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. 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. Helping you purchase your residential or investment property the Halal way If you agree with us then obviously going for a halal mortgage over a conventional mortgage makes complete sense. You might be wondering what is an “Islamic Mortgage”? Rental rate discounted until 30th June 2015. 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. 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. 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. Al Rayan Bank is thought to be the UK’s biggest Islamic finance provider. Some Islamic lenders will offer a rent only option. Want to know more about you rights, read the FSA fact sheet on Islamic mortgages (also known as Home Purchase Plans). 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. Can I apply for right to buy under an Islamic Mortgage? Our Islamic … In addition, other factors can make HPPs slightly more expensive than a traditional mortgage. Within a conventional mortgage, the lender will provide finance for the home and charge interest on this loan. FSA Reports steady growth for Islamic mortgages. Rental rate fixed until 30th June 2015. An Islamic mortgage is a Sharia compliant method of purchasing a property. 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. Halal Options is the trading name of One Option Finance Ltd. We offer Independent advice on halal, mortgage alternative Property Purchase Plans. From £500,000 to £3.5million. 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.. 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 customer will then lease the part of the property that the bank owns and pay a monthly rental payment. Rental rate discounted by 0.6% until 30th June 2015. What else would you like to see on this web site? This rent will not contribute to the loan repayment.   > Islamic Mortgages / Halal Mortgages. (Range of terms available to you will depend upon your circumstances). You may be wondering what is an “Islamic Mortgage”. Islamic Mortgages from Mortgages for Muslims Call us on 0845 5390053 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...], 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. Furthermore, these mortgages have been deemed acceptable and have been approved by leading Islamic scholars in finance. Why Expats Should Consider a UK Mortgage. 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. Islamic Mortgage Uk, Sutton, London. Evidently, we need to do our best to live in accordance with the teachings of Islam. In a nut shell how does an Islamic mortgage work for different types of purchases? In a conventional mortgage, the bank provides the finance to the purchaser on the condition that the amount borrowed (plus interest!) This may be multiplied many times to include interest paid out in business loans, personal loans, overdrafts, hire purchase etc. Islamic Mortgage UK is the leading resource for all Muslims looking for Islamic finance solutions. It offers access to finance, while adhering to Islamic restrictions on lending with interest and speculating.. :: You are here: The monthly payment will contribute to repaying the borrowed sum and the banks profit. The bank has no ownership of the property, however, they will secure this loan against the property. The fact that you are visiting this website suggests you are aware of the prohibition for a Muslim to give or receive interest (Riba). We would love to hear from you, please tell us: how can we improve it? FCA #: 4749334 | Company #: 5321285 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. The purchaser’s share in the property will increase with each payment and therefore, the banks share will decrease. We are authorised and regulated by the Financial Conduct Authority. An Islamic mortgage on the other hand is quite different to this. Rental rate discounted until 30th June 2015. iscounted from IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. JavaScript is disabled in your browser. Inshallah you will find what you are looking for. 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. Available to all customers regardless of faith. 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. 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. Choice of repayment terms available from 3 months to 25 years. FCA #: 4749334 | Company #: 5321285 What is an Islamic Mortgage? ABC International, Ahli United Bank and UBL are the other UK-registered banks to offer home purchase plans. Registration Number: 202 4497 34 We are authorised and regulated by the Solicitors Regulation Authority No: 617591. A home purchase plan offers you a Shariah-compliant alternative to a mainstream mortgage, with competitive rates and an ethical approach. Islamic mortgages. The Islamic Lender  will be the registered owner of the property. 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. We can also arrange for a free quote for Islamic Insurance and Islamic Conveyancing. Halal Options is the trading name of One Option Finance Ltd. We offer Independent advice on halal, mortgage alternative Property Purchase Plans. Landlords of any faith looking for ethical and Sharia compliant... 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. From 1st July reverts to IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. 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. Within Shariah finance methods, the Islamic lender will always own the property at some point and later return this to the purchaser . Rather than the 5% or 10% often paid by first-time buyers, HPP agreements require around a 20% deposit. There are a range of Islamic mortgage alternatives available, allowing buyers to get on the property ladder while being sharia-compliant. You can use it just like a conventional mortgage to buy or refinance your home. 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. The outstanding balance will need to be paid once the term has ended. If you’re looking for an Islamic mortgage, one which is halal (lawful), you can apply for one through a specialist provider. One of the most serious prohibitions in our faith is the use of interest. Islamic Mortgages .co.uk information website is the leading resource for all those looking for Islamic Finance solutions. Rental Rate of 5.49%, which is base rate + 4.99% margin. Islam forbids interest-bearing loans, so Muslims may prefer to seek a halal alternative when purchasing a property. We provide a comprehensive analysis of all Shariah Law compliant Islamic mortgage products available within the UK. 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. Minimum finance of £70,000 - maximum £750,000. However, during the mortgage term, the purchaser pays rent which is how the bank will make their profit. Administration fee of £399. Ijara Islamic mortgage; The ijara mortgage is basically the diminishing musharakah, apart from there is no “diminishing” going on. 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