Pinnacle Financial Solutions LTD

Muslim Mortgage

Islamic mortgages are designed to allow home buyers to borrow without the need to pay interest, something which is forbidden under Islamic law.

An Islamic mortgage is therefore an option for Muslims, and others, who want to raise finance to buy a home while remaining compliant with their beliefs under Sharia law. For this reason, you might also find Islamic mortgages are broadly referred to as Sharia-compliant mortgages and halal mortgages (halal means religiously acceptable according to Muslim law).

Read on to learn more about how Islamic mortgages work and the providers that you can approach to get a Sharia-compliant mortgage.

Home purchase plans generally involve the bank buying, and initially owning, the property you wish to buy. The monthly payments you make will partly go towards buying the property from the bank and partly be considered rent for allowing you to live there. Once the mortgage term ends, the idea is that you’ll either have repaid the bank’s capital outlay in full, meaning ownership of the property can pass to yourself, or there will be an amount left to pay that needs settling before you can assume ownership.

A halal mortgage is a mortgage that complies with the Islamic Sharia rules relating to mortgages, money, and borrowing. The financing terms of halal mortgages must comply with the principles of Sharia law, and many Muslims in the United Kingdom are on the lookout for support for halal mortgage and home finance products and services when they are considering moving home.