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. Copyright 2020 Islamic Mortgage UK - All Rights Reserved. Al Rayan Bank is thought to be the UK’s biggest Islamic finance provider. Minimum deposit is 30% of the property value. 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. interest. This purchase is done in a way which avoids interest, speculation and uncertainty – factors of traditional mortgages which are prohibited within Islam (Haraam). 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. 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… [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. 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. This rent will not contribute to the loan repayment. Rental rate discounted until 30th June 2015. iscounted from IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. 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. Read on to find out how Islamic mortgages work. 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. 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. Your opinions are not only important to us but also to everyone visiting this website. 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. Find out what you could borrow and what your payments will be today. One of the most serious prohibitions in our faith is the use of interest. What changes would you make to this website? Sharia-law-compliant home purchase plans help you buy your home in a way not involving paying interest. A home purchase plan offers you a Shariah-compliant alternative to a mainstream mortgage, with competitive rates and an ethical approach. A 'Salaam-u-Allaikum. 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. A number of leading scholars, Islamic writers and finance experts have produced various pieces of work outlining their arguments. In a conventional mortgage, the bank provides the finance to the purchaser on the condition that the amount borrowed (plus interest!) Administration fee of 1% of finance amount (minimum £995). (Range of terms available to you will depend upon your circumstances). From £500,000 to £3.5million. If you’re looking for an Islamic mortgage, one which is halal (lawful), you can apply for one through a specialist provider. In addition, other factors can make HPPs slightly more expensive than a traditional mortgage. An Islamic mortgage is a Sharia compliant method of purchasing a property. 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. Minimum finance of £70,000 - maximum £750,000. Within Shariah finance methods, the Islamic lender will always own the property at some point and later return this to the purchaser . Available to all customers regardless of faith. I Islamicmortgages.co.uk allows you to view a range of home finance product information, provided by all the lenders in the UK. Rental Rate of 5.49%, which is base rate + 4.99% margin. 70 likes. (£399 IBB admin fee). Any of the Shariah banks we work with will be glad to provide you with the details of their Shariah compliance upon request. FSA Reports steady growth for Islamic mortgages. The monthly payment will contribute to repaying the borrowed sum and the banks profit. 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 … ABC International, Ahli United Bank and UBL are the other UK-registered banks to offer home purchase plans. You can see all the UK Islamic mortgage products available today on our comparison page. Ijara Islamic home mortgage The ijara home loan is essentially the decreasing musharakah, apart from there is no “lessening” going on. An Islamic mortgage / halal mortgage / home purchase plan is a financial product designed to help Muslims purchase property without borrowing money. Administration fee of £399. All you need to do is complete our short online form! 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. If you agree with us then obviously going for a halal mortgage over a conventional mortgage makes complete sense. An Islamic mortgage on the other hand is quite different to this. The first port of call in these conversations is often “what about a Shariah-compliant mortgage?”. We would love to hear from you, please tell us: how can we improve it? We provide a comprehensive analysis of all Shariah Law compliant Islamic mortgage products available within the UK. How can I be sure that these Islamic mortgages are really Shariah compliant? The bank has no ownership of the property, however, they will secure this loan against the property. 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. 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. Rather than the 5% or 10% often paid by first-time buyers, HPP agreements require around a 20% deposit. 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. A mortgage is haram but there are specialist mortgages for those who practise Islam and these mortgages are halal. Reverts to IBB Buy To Let Finance Rental Rate on 1st July 2015. Evidently, we need to do our best to live in accordance with the teachings of Islam. You can see all the UK Islamic home mortgage items readily available today on our contrast page. Islamic Mortgage Uk, Sutton, London. 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. The Islamic Lender  will be the registered owner of the property. The customer will then lease the part of the property that the bank owns and pay a monthly rental payment. Our mortgage calculators will help you understand what your mortgage may cost. Islamic - or Halal - finance is a way of spreading the cost of a new or used car that's compatible with the faith. 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. FCA #: 4749334 | Company #: 5321285 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.​. The second key reason used by Camp A, is that there is a necessity to own a home. AUB (UK) has been offering Shari’ah compliant home purchase plans since 1997. Halal Options is the trading name of One Option Finance Ltd. We offer Independent advice on halal, mortgage alternative Property Purchase Plans. 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. [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. 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. What's the difference between A 3.89% interest mortgage vs 3.89% Halal Mortgage? Islamic mortgages are available from a number of banks in the UK. 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. This may be multiplied many times to include interest paid out in business loans, personal loans, overdrafts, hire purchase etc. Furthermore, these mortgages have been deemed acceptable and have been approved by leading Islamic scholars in finance. The purchaser’s share in the property will increase with each payment and therefore, the banks share will decrease. Islamic mortgages. Rental rate fixed until 30th June 2015. Islam forbids interest-bearing loans, so Muslims may prefer to seek a halal alternative when purchasing a property. However, during the mortgage term, the purchaser pays rent which is how the bank will make their profit. What is an Islamic Mortgage? We are authorised and regulated by the Financial Conduct Authority. Some Islamic lenders will offer a rent only option. Al Rayan Bank has the widest range of Islamic mortgage alternatives in the UK. 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. What do different 'Islamic schools of thought' say? It should be noted that Islamic banks will often require a larger deposit than a mainstream UK bank or building society. Mortgages for Muslims is an Islamic Mortgage Intermediary offering sharia compliant Islamic Mortgages. Discounted from IBB Home Finance Rental Rate of 4.49%, which is base rate + 3.99% margin. We help you purchase your residential property the Halal way. 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. We are authorised and regulated by the Financial Conduct Authority. Years. Registration Number: 202 4497 34 We are authorised and regulated by the Solicitors Regulation Authority No: 617591. 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. We disagree as the threshold for “necessity” in Islam is really high. 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