Islamic Mortgages

It is against Islamic law to pay or receive interest which causes a problem for Muslims living in Britain as they are unable to have a mortgage to buy a home.

However a number of banks and building societies have a solution to this problem allowing Muslims to buy their own homes.

The Murabaha Mortgage is a form of credit which enables you to make a house purchase without having to take out an interest bearing loan. The bank buys the house and then sells it to you on a deferred basis.

The Ijara Mortgage is a leasing agreement whereby the bank buys a house for you and then leases it back to you over a specific period.