Thank you for your enquiry for a Islamic Mortgage
Each person has unique and individual circumstances and requirements, and our recommendation for your Islamic Mortgage will reflect your own personal needs.
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Islamic Mortgages can be confusing, and if you do not know the culture or the laws, you might not know the difference between Islamic mortgages and traditional mortgage products. For example, with an Islamic mortgage, no interest is paid throughout the life of the loan. An ignorance of the differences between Islamic mortgages and traditional mortgage products can cause problems for Muslims in Britain.
Islamic Mortgages have found ways around the Islamic laws. Two examples would be Murabaha and Ijara.
A Murabaha is a mortgage that would make a good choice for people with funds to back their home purchase. The process begins when you and the seller agree to a purchase price. The lender purchases the property and sells it back at a slightly higher price. It requires 20% down payment on the cost of the home, and the buyer would receive the title once the mortgage is approved. After that, the home is in the buyer’s name and any money owed can then be paid off all at once or a little at a time in instalments.
The Ijara is a little different but the buyer still seeks out the desired home. The seller and buyer agree on a price but in this case, the lender will actually purchase and hold the title to the home. Then a lease is arranged with monthly payments similar to rent-to-own deals. This is the more affordable and popular option. Although not called interest, part of the property price is also paid to the lender. When the full price of the home is paid, you get the title. This is one of the more popular Islamic mortgages for buyers without a lot of money, because they do not have to come up with 20% of the purchase price as they would with a Murabaha.
We can help you obtain an Islamic mortgage and the best deal available
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