Islamic mortgages could help people afford property

Mon, 19 Sep 2011
Islamic mortgages could be one option for people in the UK finding it increasingly difficult to afford the property they desire.

The approach - which enables buyers to pay back what they owe in equal instalments over a fixed term - may prove particularly popular in light of new research from First Direct .

According to the study, the increasing cost of houses and flats - coupled with escalating deposits - is far outpacing rises in income.

It has been demonstrated that the average deposit has swelled from £6,793 in 1990 to £65,924 in 2011.

The organisation calculated home purchasers now face an almost ten-fold increase in costs when it comes to setting down money for property .

Bruno Genovese, senior savings product manager at the group - which is a division of HSBC Bank - said: "The average deposit needed in the first place has actually risen more than twice as fast as house prices and almost four times as fast as income."
Salaam-u-Allaikum
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