Halal Mortgages

STOP PRESS

"We no longer provide or recommend Halal or Islamic mortgages as we have found that they do not provide the best financial value for our clients."

Halal Mortgages

Usual mortgages are interest based, and this is in conflict with Islamic principles, and prohibited by Islamic Law/Principles. This has provided difficulties for the finance industry and placed barriers for UK Muslim homeownership

Manzil Halal (permissible) mortgages mean that the dedicated Muslims can now have a choice. Manzil Halal mortgages are different than the usual mortgages, so they comply with Islamic laws and principles.

The most usual form of Shariah home purchase finance are Manzil Ijara and Manzil Murabaha. These methods are the suitable for purchasing property in the UK. These are both Manzil Ijara and Manzil Murabaha compliant. Manzil Ijara is a “lease-to-own” concept and is interest-free. In a Ijara based contract, you find the property you are interested in and agree to the price. The mortgage lender starts a ‘Promise to Purchase’ contract for the amount equal to the purchase price and buys the property. In tandem with this, you sign an agreement with the bank which particulars your right to occupy the house. Monthly payments are made to the mortgage provider and a part of the money is put towards the purchase of the house with the balance considered as rent. When the balance is paid in full, all other payments stop and you own the property.