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Why is Interest in Mortgages and Life Insurance Haram?

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Answered by: Maulana Irfan Ali


Why is life insurance Haram? Why is interest in mortgages Haram even though you pay less for the house you bought over time? Meaning your house will be worth more in 25 years than the amount you bought it at.

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

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


The Quran mentions in numerous places the prohibition of dealing with interest.[1]

The Prophet (peace be upon him) mentions that may the curse be upon the eater, witness, and writer of interest.[2]

The principle of interest transaction being unlawful is due to the Qurans explicit order. If one was to calculate the amount of sum borrowed over a period of time and the sum repaid there will be a significant difference. 

Only Allah knows best

Written by Maulana Irfan Ali

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham


[1] Surah Baqarah verse 275

[2] Mishkaat – Chapter of Interest

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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