Answered by: Alimah Nasima Umm Hamza
Question
Assalamu Alaikum Brother.
I live in London on rent. I want to know more about mortgages. Whenever I go to enquire about mortgages I am told that I have to pay interest. My question is, can I take a mortgage if interest is fixed and you know how much you will pay for your house?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
It will not be permitted to get a fixed interest rate mortgage. This is because it is still based upon making a monetary gain on giving out a loan, i.e. the bank is making money by lending you money.[1]
Only Allah knows best
Written by Alimah Nasima Umm Hamza
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
[1] Mukhtasar Al-Qudoori, Kitab Al-Bay’, Chapter on Riba, p180