Islamic mortgages growing in popularity

Fri, 29 Jul 2011
Islamic mortgages are growing in popularity, having only been on the market in the UK for a short time, it has been claimed.

According to What Mortgage?, sharia home loans have only been available in Britain for a few years and are still finding their way into the public consciousness.

Editor Ben Wilkie explained that there are some key contractual differences between an Islamic mortgage and a traditional one.

"A sharia mortgage is like paying a lease back," he said. "What happens is that a member [of the religion] will buy the property and will charge rent and also a monthly fee towards the capital as well.

"Although it's expensive, it works as a normal mortgage would in terms of getting the property paid for and making monthly payments."

The expert noted that the customers does not legally own the property until they have made their final payment.

Such deals are becoming more commonplace in the UK and have become a legitimate part of the market for Muslims worried about contravening Islamic law.
Salaam-u-Allaikum
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