'The Round Up'

What's happening the Islamic Mortgage market?

Jan 2009
Paradigm to offer Islamic mortgage alternative, Paradigm Mortgage Services, the mortgage partnership proposition, has announced it is to be the Islamic Bank of Britain's (IBB) exclusive directly authorised distributor for its Sharia'a-compliant products.  IBB has entered the broker and network market with great vigour.

UK's first Muslim home insurance is launched; Muslim Insurance Services is the UK’s first 'Price-checked' Halal insurance provider to offer both personal and commercial insurance. Insurance concept and cover is based on Islamic principles (known as Takaful) which are highly ethical. They are also leading the way in social corporate responsibility with a dynamic charitable programme for societal change. Muslim Insurance Services Ltd will give an unprecedented 50% of its profits to charitable causes for all communities.

Feb 2009
IBB decide to strict their lending to properties to the minimum value of £200k.

Mar 2009
IBB announces that the restriction of £200k was over stated and thus reduces to minimum property value of £150k. The question still remains, is this enough?

Re- emergence of halalmorgages.com, for a while they had disappeared from the UK Islamic mortgage market. They have re-launched with a new website and will continue to provide the only halal broker line in the UK. Welcome back!

Aburaq continues to go from strength to strength, although there are mutterings that Bristol and West (and Bank of Ireland) may no longer be the vehicles through which their business is done.  We have yet to see any announcements; the current and diverse range of products on offer still lead the Islamic mortgage market.

There have also been rumours that HSBC Amanah is scaling down its operation; having once led the market, it will be a real shame if they disappear completely.

April 2009
Islamic Bank of Britain is introducing its mortgage product to Scotland. It is understood the launch is just the beginning of a wider push into Scotland - which is likely to include the opening of a physical branch and back office operations as well as the introduction of online retail banking for Scottish customers.

Comment
The Islamic mortgage market has decreased in size by about 35%; we envisage that it will continue to fall and mirror what is happening in the conventional market.  The biggest reason for this fall has been the limited available mortgage products for first time buyers and those looking to remortgage.

The Islamic mortgage market, is not offering any real alternatives to the ordinary customer, unless you have a large percentage of equity in the property or have a substantial deposit to put down.  Never the less, the Islamic mortgage market remains positive, with all lenders investing in new marketing initials to drum up business.

www.islamicmortgages.co.uk remains focused on provide the clear cut no nonsense approach to the UK Islamic mortgage market, our focus remains on providing good quality information without comprising our ethos.