Islamic Mortgages Products - Help And Advice
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What is an Islamic Mortgage?
Islamic Mortgages are made specifically for those of you who practice the rules of Islam in the UK. Under Islamic law, a Muslim should not earn or pay interest . To cater for this,the Islamic Scholars and the Banking world has got together to create products are are in line with Islam. In 2003 the rules for the Islamic Mortgages were changed, until that year the Islamic Mortgages were not popular due to the fact that was a double payment of stamp duty involved and this made them tax inefficient. However; this rule has since been removed and now stamp duty is only paid once. Since then the market for the Islamic Mortgage has grown at a steady pace.
What Types of Islamic Mortgages are Available?
There are only a limited number of Mortgage lenders in the UK market who are currently offering the Islamic Mortgage schemes. Currently in the UK all Islamic Mortgages are given under the Ijara, Musharaka or Murabaha methods.
An Ijara agreement is a 'lease to own' contract, what happens here is that you find the property that you wish to buy, you then agree on a price with the person who is selling it, you will then contact your lender and advise them of the price of the property, they then act on your behalf by purchasing the property under an agreement called “Promise to Purchase”. The house will belong to the lender, and you will be given the right to live in it. Once this is all done you have to make regular repayments to the lender, the repayments will cover 2 aspects, a rent and the repayment of the money that you have borrowed. Once the purchase price has been paid off in full the rent payments will stop and the ownership of the property will be handed over to you. The mortgage being structured in this way means that there are no interest payments on the house and the Shariah Law is not broken by you or the lender.
Alternatively there is the Muabaha Method, once again the initial stages are the same. What happens after the lender has purchased the property is that the lender sells the property to you at a higher price which is agreed by both you and the lender, repayments are calculated by considering all of the following, to the down payment that you make at the time of purchase, the agreed length of the mortgage, and the lenders profit. Under this scheme you are normally required to make a down payment of at least 20% of the value of the purchase.
What can the "Mortgage Help Desk UK" do for you?
At the "Mortgage Help Desk UK" we have been working on Islamic Mortgages for years. Our staff are trained and dedicated, to do their best to find you the best possible Islamic Mortgage that may suit your circumstances.Most UK Islamic Mortgage lenders now offer great rates on their UK Islamic Mortgage products, the staff at the "Mortgage Help Desk UK" will look at all available Islamic Mortgages products on the UK Islamic Mortgage market and will help you whether you have good or bad credit, but it is essential that you consider tie in factors when getting a Islamic Mortgage with any UK Islamic Mortgage lender. This is where our friendly and helpful highly trained staff can help you by giving you detailed advice on the extensive range of Islamic Mortgage products that are available on the UK Islamic Mortgage market.
Sharia Mortgages Frequently Asked Questions
Other Relevant Ancillary Products
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No information on this website is intended to constitute advice. This site contains a summary of the information relating to the products. If you are interested in any of the information on the site, you should seek information from us. We cannot guarantee that information will be accurate, complete and current at all times. All information on our Website is subject to change without notice.
