High interest rates making Islamic mortgages more affordable

Mon, 09 Jan 2012
High interest rates could play a part in increasing the attractiveness of Islamic mortgages among would-be homeowners.

Sarah Nabeta, a civil engineer at Newplan in Kampala, Uganda - who was speaking amid news that middle income workers in the country are likely to face a tough housing market this year - suggested people will find it difficult to pay what they owe when these levels are up, the East African reports.

The industry figure stated: " Islamic banking offers a better option for acquiring a decent house."

She added: "The interest rates are so high that it makes it difficult to sustain repayments."

According to the news provider, the cost of mortgages through pension savings is set to increase due to a steep escalation in the rates, with house prices also set to climb as a result of a surge in the cost of land.

The news comes after Chron.com recently suggested a greater focus may soon be placed on the Islamic mortgage market due to the effects of global economic crises that have emerged in recent years.
Salaam-u-Allaikum
Speak to us!
Speak to an Islamic mortgage specialist - free and easy.