Islamic Mortgages | Overseas & Specialist Mortgages

TheMoveChannel.com | Islamic Mortgages

mortgage

Key information...

Interest Rates from: 3.99%
Minimum loan: £70,000
Loan to Value from: 80%

More information...

The Holy Qur'an makes it clear that entering into transactions that involve riba (or interest) is Haraam (or forbidden). With an Islamic mortgage, both you and the Bank will each contribute towards the purchase of the home. For example, the Bank may contribute up to 80% of the purchase price. Over a period of up to 30 years, you will make monthly purchase instalments through which the Bank will sell its share of the home to you. With each payment instalment, the Bank's share in the property diminishes while your share correspondingly increases. While the purchase instalments are being made, the Bank will charge you a rent for the use of its share of the property, the rent being calculated according to the respective shares owned. Unlike a conventional mortgage, where money is lent to help with the purchase of a property, the Bank makes its profit through the property's physical use via your occupation as a tenant. This is one of the fundamentals of Islamic finance whereby you can charge for the use of something physical, like a property, but you cannot charge for the use of money.

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