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Islamic Mortgages in the UK

Answered by: Maulana Maruf Ahmed


I’ve been living in the UK for more than 10 years and settled with my family here in Manchester. Since then I lived in multiple houses and all of them were on rent basis. Mu current accommodation is on rent as well. In the UK, there is so much confusion about the Islamic mortgage (Housing finance) been offered in Britain whether it actually fulfils all requirements of Shariah law or not. I even spoke to my local masjid’s Imam but unable to get a clear answer. I am talking particularly about Housing Purchase Plan (HPP) being offered by Al-Rayan Bank (formerly Islamic Bank of Britain IBB). I’ve also read ‘An introduction to Islamic Finance’ by Mufti Taqi Usmani Sb and compared it with Al-Rayan bank HPP T&Cs and came to the conclusion that Al-Rayan Bank is offering Shariah Compliant Home financing.

My question is; 1. Please advise if my understanding is correct and that the HPP plan offered by Al-Rayan Bank to buy a house is shariah compliant? If not, please advise which particular clause or condition is making this non-shariah compliant. Jazak Allah khair

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful


Please visit the following link which shed light on Islamic Mortgages:


Only Allah knows best.

Written by Maulana Maruf Ahmed

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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