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At the heart of Islamic finance is the principle of risk sharing. The lender and you share the risk of your property appreciating or depreciating over time. However, the lender does not benefit from any increase in your property's value if you want to sell it. They only receive the balance of the Acquisition Cost. Any appreciation or depreciation in value will be passed on to you on completion of the sale.

 

• In a nut shell how does an Islamic mortgage work for different types of purchases?
• How can I be sure that these Islamic mortgages are really Shariah compliant?
• How do lenders make money?
• Do you charge a fee?
• Will I have to pay stamp duty?
• What about mortgage protection insurance - what happens if I lose my job and must go on state benefits?
• Can I apply for right to buy under an Islamic Mortgage?
• Why are Muslim Mortgages more expensive than traditional interest based mores?
• If I own a home, can I sell it to a person who will finance his/her purchase of the home by means of a mortgage? Should I care where the money I receive as payment for the home is coming from?
• Is it lawful buying a home in cash (no mortgage) from an owner who originally bought the home with a mortgage, and for which there is still an outstanding amount owed to the bank?
• What help does the lender offer, if something happens to me and I can't make payments?
• I want to sell my property. Will the lender benefit from any increase in the value?
• Can someone with bad credit apply for an Islamic mortgage? (copy 1)
• What happens if I die, as the property is in the Bank's name? (copy 1)
• I have heard Interest rates are used to 'benchmark' the calculation of the rental? Therefore, is this mortgage no better then an interest mortgage?
• I understand the Bank will review the Rent. I have two questions concerning this:
• What is the source of the money being lent (is it Riba based activities)?
• Do Islam Mortgages get involved in refinancing of property?
• I heard within Islam you can not have two deals in one contract which most of these mortgages do, how is it then Islamic for the lender?
• If I receive a payment from the government under the 'key worker scheme' can I use this as a deposit and get an Islamic Mortgage?

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The entire product range offered on this website is Shariah compliant. However, from time to time we will promote relevant none Halal products where no Islamic / Halal alternatives exist. Your home is at risk if you do not keep up monthly payments due under an Islamic / Halal mortgage agreement (your lease and / or diminishing ownership agreement).