It is against Islamic law to pay or receive interest, this has been a huge problem for Muslims living in Britain. When it came to home buying it was only the very rich, who could afford to buy a home outright. Fortunately however many banks and building societies are starting to recognise this as a problem and are offering an alternative.

There are two options available to you that correspond with Muslim law:

• The Murabaha (Deferred sale finance) Mortgage
• The Ijara (lease to own) Mortgage

Islamic Mortgage

UNB IslamicMortgage is a diminishing ownership product that is based on Ijara principles. The amount paid by the customer results in the customer’s beneficial interest the property increasing.

United National Bank is a UK registered bank that is authorised and regulated by the Financial Services Authority (FSA).

Manzil Home Purchase Plans
Manzil differs from a conventional 'interest' mortgage because we are able to provide financial help without our clients having to pay us interest. We can do this by employing the Ijarah method of Islamic Finance.

Alburaq Home Finance

ABC International Bank (ABC) and Bristol & West plc offer you Alburaq – Islamic Home Finance. Then ABC International Bank and Bristol & West will provide all the technical expertise and support, plus the home finance itself. Alburaq Home Finance is based on the principles of Ijara and Diminishing Musharakah

Instead of lending money for a property, Bristol &West will buy the home, contributing up to 90 per cent of the purchase price. You will pay the remaining share and pay the outstanding sum over an agreed term, together with a rental payment.

Alburaq is a registered trade mark of ABC International Bank plc and is the brand name under which home finance product is provided.

How it works?

Amanah Home Finance

Amanah Home Finance is based on the Diminishing Musharakah mode of financing and helps you buy your residential property without compromising your beliefs. If you already have a traditional interest based mortgage, the product allows you to refinance your property.

How it works

The Bank's interest will decline by the same proportion. The property will be leased to you for the financing term and you will pay rent.

Islamic Home Finance - An Overview 

Buying a home is most people's biggest financial commitment. It can be time-consuming, expensive and frustrating. To make matters worse, horror stories abound of gazumping, duff surveys and rogue estate agents.

You can make the process smoother by equiping yourself with the right information.

Lenders:

• HSBC Amanah
• Alburaq
• Ahli United Bank
• United National Bank

Shariah
   
Shariah is the term used to describe Islamic law. Riba ( interest ) - the abolition of interest, is a religious goal and value that the Islamic economic system is based on. Historically, the issue of Riba combined with limited availability of Halal mortgage options has prevented numerous Muslims from purchasing homes without compromising their beliefs.