US site looks at Islamic mortgages

Wed, 24 Aug 2011
British Muslims looking for an Islamic mortgage might be interested in a recent article published by US online resource Deseret News.

The website explored the options open to believers in America and noted that while some rely on renting to avoid the prohibited practice of paying or receiving interest - or riba - others are turning to Islamic finance providers for alternatives.

Dr Iftekhar Husain told the news provider that his family are living happily free of riba, which is forbidden in Islam.

This may be a tough proposition in a country where the typical household has a mortgage of hundreds of thousands of dollars and five-figure credit card debt, the website suggested.

It pointed to Islamic mortgages, where the buyer and bank will purchase a property together, as one way to avoid contravening the laws of Islam.

After the home is bought, the homeowner will hold the lease and agree to pay the lender a set sum over a pre-arranged period of time as payment for its share in the house - effectively working like a rent-to-buy scheme.

Islamic finance is growing in popularity around the world and many lenders are now trying to widen their net to attract non-Muslim customers.
Salaam-u-Allaikum
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