The UK home loans market has been given a new dimension by the introduction of a number of Islamic mortgage products, it has been claimed.
According to moneynews.co.uk, the finance packages, which comply with Sharia law, have helped add a new ingredient to the diverse blend of products that make up the British mortgage industry .
Islamic finance is aimed at allowing Muslims to borrow without contravening the rules of their faith.
Providers of Islamic mortgages tend to buy the property outright and charge the borrower rent instead of interest on repayments .
Only when the tenant has paid enough to cover the cost of the home and the lender's extra charges are they made owner of the house .
Sharia law states that practising Muslims should not pay interest and also that such financial products should be for the good of the community.
With Britain's large Muslim population, Islamic mortgages are becoming increasingly popular.
Islamic mortgages boost UK market diversity
Mon, 01 Aug 2011
