Islamic mortgages could prove a popular option among individuals who are harbouring reservations regarding the wider home loan market at present.
Paul Smee, director general at the Council of Mortgage Lenders, has noted that although the sector appears fairly stable at present, there is no guarantee this will remain the case over the coming months.
Mr Smee was speaking as new research from the CML revealed overall lending for house purchases in July increased by both volume and value.
However, the industry expert observed: "August saw global financial turmoil and unrest closer to home and recent Bank of England approvals figures do not necessarily suggest a continuing upturn in lending in coming months."
He added this movement is likely to have been caused by a weakening appetite among consumers to borrow money of late.
Mr Smee's comments come after a recent CNN report revealed Islamic mortgages are becoming increasingly popular around the world - notably in Nigeria.
Islamic mortgages for those unsure about the home loan market?
Mon, 12 Sep 2011
