In the past British muslims have found it very difficult to purchase, remortgage or sell a property in the UK, due to their faith. Following Islamic faith and under Shariah Law, it is forbidden to receive or pay interest. This meant that muslims could not take out a mortgage or borrow from a bank to buy, remortgage or sell a house or property, without going against their Islamic faith.
Expert Shariah Conveyancing Solicitors based throughout the UK
We have an excellent panel of regulated SRA and CLC solicitors and conveyancers, that are experts when dealing with Islamic mortgages, Islamic finance products and Shariah conveyancing. Simply enter some details about your property transaction below and receive instant online conveyancing quotes from our expert Shariah conveyancing solicitors.
Instant online quotes from solicitors that handle Shariah Compliant Conveyancing
The solicitors providing quotations from our Conveyancing Network panel, are Shariah compliant and have expertise in dealing with Shariah Conveyancing Law. Organise a callback with a solicitor to discuss your requirements in more detail and finally you can instruct your solciitor online to handle your Shariah compliant conveyancing.
Shariah Compliant Islamic Mortgages from UK Banks
In 2002 the British Government made it possible for muslims and people following the islamic faith, by working with banks to introduce Shariah compliant Islamic Mortgages.There are a number of banks in the UK that offer Islamic finance products to their clients. These banks include:
- Al-Buraq by Arab Banking Corporation, which is also available through Lloyds TSB (underwritten by Bristol & West).
- Manzil with Ahli United Bank
- Home Purchase Plan with The Islamic Bank of Britain (Now called the Al Rayan Bank)
- ABT Finance with RBS
- United National Bank
- Al Hilal Islamic Bank of UAE Products
HSBC Amanah by HSBC Bank Plc used to offer Islamic finance products here in the UK, but following a restructure have now decided not to offer Shariah compliant products.
Different types of Islamic Mortgages available
Shariah compliant mortgages, are structured so that the bank or lending institution still make money, but not in the form of interest. The bank or lender will make money as profit or through charging rent when the bank or lender owns the property or asset. The 3 types of Shariah compliant Islamic mortgage are:
- Murabaha – The Bank will buy the property and will sell it back to you on a deferred basis.
- Musharaka (also known as ‘diminishing Musharaka’) – The Bank will buy the property and grant you a lease. A Trust is created between you and the Lender. With each payment your share in the property will increase until you have bought all the shares in the property. The Lender will then transfer the legal title into your name. This is the most popular form of Islamic finance today.
- Ijara – The Lender will buy the property and grant you a lease for a term. Once the lease period is completed the Lender transfers the legal title of your new home to you.
Please Note: Islamic mortgages offer an alternative financing structure for muslims and people that require a Shariah compliant mortgage. It is not a 0% free deal to buy your house for nothing.