Islamic Mortgages

Islamic Mortgages

Islamic Mortgages


What is the correct position in relation to Islamic mortgages to purchase a house?

بسم الله الرحمن الرحیم


Our understanding of the Islamic mortgage products in the UK is that they are not perfect. Therefore, if a house can be purchased via interest-free loans or deferred payments in compliance with Shariah, this is preferred. It is realised that this is not always possible in which case one may use an Islamic mortgage product, particularly for the first home. Conventional mortgages must be avoided.

This is a general statement in relation to Islamic mortgages. For the Shariah compatibility of specific products and schemes, please refer to the Shariah Boards of the banks or consult a Mufti.

Allah knows best

Yusuf Shabbir

5 Shawwāl 1443 / 6 May 2022

Approved by: Mufti Shabbir Ahmed