The rise of Islamic mortgages and finance

Fri, 05 Aug 2011
The last few years have been tough for borrowers, but Islamic mortgage providers have managed to largely weather the storm, taking advantage of a suppressed market to gain a foothold in the industry.

A recent Ince and Co article for mondaq.com examined how the rise of Islamic finance has changed the market and given mortgage customers another option.

The news provider noted that while Islamic mortgage firms were hit by the fiscal downturn, they still managed to expand their assets by 28.6 per cent in 2009 and are now believed to have assets totalling approximately $1 trillion (£613.8 billion).

This, the authors claim, makes Islamic finance a viable option for Muslims and non-Muslims alike.

Some of the main types of Islamic finance structures include Murabaha, which sees the bank purchase an asset and the customer making payments into an account designed to buy the house or other product at a later date at a higher price, which allows the lender to make a profit without contravening Sharia law.

Islamic mortgage providers in the UK include the Islamic Bank of Britain and ahli united bank.
Salaam-u-Allaikum
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