Purchasing a house on mortgage
Q: About buying a house in the UK on interest (sood) mortgage. One mortgage is standard and one is Islamic. In stranded the bank will show you how much interest you will pay and in Islamic the bank will show you how much rent you will pay. But many people and Ulama say that Islamic mortgage is also same as standard mortgage. Because you want to buy house that you don’t want to pay rent to council or to the owner then why should you pay it to Islamic mortgage and one of my friends has spoken to a mortgage adviser about both mortgages and he said that both mortgages are the same, the only difference is in the name.
A: If the bank is charging one an amount more than the loan amount, then this is riba (interest) regardless of whether it is fixed or not.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)