Imran Pasha, head of sales and service at Islamic Bank of Britain, said: “IBB’s fixed rental rate products are ideal for landlords looking to fix their outgoings over the next two years. Islamic Bank of Britain. An Islamic mortgage allows you to buy a house in a sharia-compliant manner over a number of years without using any interest (riba). I don’t even mind paying more in the long run as long as the mortgage is Halal. A Qard hasan – this is an interest-free loan (your mum might lend you £500 to buy something but you have to pay it back). There are different types of Islamic mortgage products. Our job is to keep the UK’s financial system stable. salam i put about 40000 to 50000 deposit how much after give me mortgage…. Helping Muslims get ahead on their investment, personal finance and entrepreneurial journeys. In 2004, the Islamic Bank of Britain was created, before being renamed the Al Rayan Bank in 2014 after it was purchased by Masraf Al Rayan, one of the largest Islamic banks in the world. Islamic Bank of Britain Mortgages aims to ensure that customers get the best value for their money while staying in line with their beliefs. The purchaser then slowly buys the property back from the bank by paying rent on the bank’s portion, as explained above. From industry conversations we understand that they too will be shortly launching their Islamic mortgage products. It is the first British bank to operate entirely according to Islamic principles, but is not limited to Muslim customers. Until recently, HSBC offered an Islamic home financing contract in accordance with `ijara wa iqtina principles, but this has now been replaced by its diminishing partnership product. Check out our podcast with them here. Murabaha itself is a simple concept. From a shari’ perspective they’re great, as they don’t lock you into buying back the Heylo portion of the house, and as such there isn’t a “debt-like” element to the structure like there arguably is with a standard HPP. They’re well-funded like Heylo and we’re excited to see what they come up with when they finally launch. You can find out more about that structure and why we’re not that keen on it here. Alhumdulillah, The United Kingdom is a global financial center historically connecting the East and the West and also a home for more than 2.7 million Muslims (around 4.5% of total population). Check it out here. It is not typically seen for a residential Islamic mortgage. They have the widest range of Islamic mortgage products in the market, and are well capitalized. Founded in 2004 as the first Islamic retail bank in Europe, Al Rayan Bank currently serves more than 85,000 customers, over a third of whom are believed to be non-Muslim. This is the most common type of Islamic mortgage product you will see. This means that mainstream mortgages are not appropriate for Muslims, who have previously struggled to find ways to get a foot on the property ladder. Al Rayan Bank has the widest range of Islamic mortgage alternatives in the UK. Registered Office: Edgbaston House, 3 Duchess Place, Hagley Road, Birmingham, B16 8NH Islamic Bank of Britain plc is authorised and regulated by the Financial Services Authority under Registration No. Is a conventional mortgage permissible for me ? The HPP allows you to buy a property in partnership with the Islamic bank, paying rent each month on the portion you don’t own. You need to agree with the terms to proceed. We do not have a phone helpline at this stage. How Are Islamic Mortgages Different to Conventional Ones? Certainly – if you go through our halal mortgage comparison and select remortgage, you’ll be able to chat directly to the bank who can help you. An Islamic Mortgage represents a fairer way to borrow the money to buy your home, and you can be assured that all your borrowing is strictly Halal, and therefore safely Sharia-compliant. Or release some cash from your home. But only as long as the risk profile of the transaction is actually equivalent to the Islamic bank “renting” as opposed to “loaning”. Because of this, they have a long history of supplying Islamic mortgages to a considerable amount of customers. Privacy Policy / Terms of Use. Definitely worth posting in our forum (forum.islamicfinanceguru.com) and our muftis can opine! However you are in a long-term contractual agreement with the bank to buy their portion of the house off them and have to pay rent all the while. Choose one of our pre-made layouts and import it with just one click. All of our work is conducted in a fair, ethical and responsible manner, keeping our customers happy at the same time. Al Ahli. UBL UK Ameen Islamic Banking. 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