I have a house with a mortgage. My father helped me with the deposit off the house and he made me sign an agreement that I would marry a Muslim girl. At the time I wasn’t practicing but now I am very much in the Deen. He furnished the house and paid for works which he said was a gift, but 6000 pounds I agreed by mouth to pay. The house was bought at 90000 and is worth 250,000. I have been trying to convince him. I want to sell and get out of the Riba. He has become very angry and wants his money demanding profit. What is my position?
ANSWER
In the name of Allah, Most Compassionate, Most Merciful,
Interest based loans are not permissible in Shariah, thus purchasing of a house on mortgage is unlawful. One must sincerely repent on one’s actions and abstain from being involved in unlawful transactions in the future.
However, the house which was purchased by paying interest loans (mortgage) does not become Haram and it is permissible for one to reside in it. Therefore, it will be permissible for you to reside in the house.
If the money, which your father paid towards the purchase and furnishing of the house was given to you as a gift (as you have mentioned), then he can not claim it back. Only the 6000 pounds will have to be paid back as you agreed to repay him that amount. Neither is it necessary for you to pay him any profit, as the increasing of the value has no effect on a loan.
And Allah Knows Best
[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK