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A Shariah Compliant Mortgage is a loan which falls in line with Islamic Law, this means a 0% interest mortgage, as interest is forbidden in Islam.<\/p>\n
An Islamic mortgage is a halal way of purchasing a property in the U.K. They are considered an alternative to conventional mortgages for Muslims seeking a Sharia-Compliant form of finance.<\/p>\n
These mortgages are sometimes referred to as a Home Purchase Plan (HPPs).<\/p>\n
Rather than fitting the classic definition of a mortgage they\u2019re actually a business partnership between an individual and a bank or lender. There is a reason for this.<\/p>\n
One of the guiding principles of Islamic faith is that making money from money is forbidden. The creation of wealth is permissible only if based upon fair trade where the risks and rewards can be shared. So, any form of finance which involves a requirement to pay interest on money borrowed \u2013 like a traditional mortgage \u2013 falls outside the parameters laid down through Sharia Law.<\/p>\n
[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_text_aligment=”center” css=”.vc_custom_1695566805187{margin-top: 100px !important;}”][vc_column][vc_column_text]<\/p>\n
Shariah compliant mortgages, are structured so that the bank or lending<\/p>\n
institution still make money, but not in the form of interest. The bank or lender<\/p>\n
will make money as profit or through charging rent when the bank or lender<\/p>\n
owns the property or asset and having a solicitors firm knowledgeable is key. The<\/p>\n
3 types of Shariah compliant Islamic mortgage are:<\/p>\n
The Bank will buy the property and will sell it back to you on a<\/p>\n
deferred basis.<\/p>\n
The Bank will buy the property and grant you a lease. A Trust is created between you and the Lender.<\/p>\n
With each payment your share in the property will increase until you have<\/p>\n
bought all the shares in the property. The Lender will then transfer the legal title<\/p>\n
into your name. This is the most popular form of Islamic finance today.<\/p>\n
The Lender will buy the property and grant you a lease for a term. Once<\/p>\n
the lease period is completed the Lender transfers the legal title of your new<\/p>\n
home to you. Please Note: Islamic mortgages offer an alternative financing structure for<\/p>\n
muslims and people that require a Shariah compliant mortgage. It is not a 0% free<\/p>\n
deal to buy your house for nothing.<\/p>\n
We act for clients across the world on these and other finance matters.<\/p>\n
There are a few shariah compliant lenders whom we work with closely so should<\/p>\n
this be a requirement for you please don\u2019t hesitate to contact us and we will aim<\/p>\n
to find you the best product suited to you.<\/p>\n
[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"
[vc_row][vc_column][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content” css=”.vc_custom_1695288541551{margin-top: 50px !important;background-image: url(https:\/\/profilecapital.co.uk\/wp-content\/uploads\/2023\/08\/WhatsApp-Image-2023-07-21-at-14.51.18.jpeg?id=5047) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}”][vc_column][vc_empty_space height=”500px”][\/vc_column][\/vc_row][vc_row content_text_aligment=”center”][vc_column][vc_column_text] Shariah Compliant A Shariah Compliant Mortgage is a loan which falls in line with Islamic Law, this means a 0% interest mortgage, as interest is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-4769","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=\/wp\/v2\/pages\/4769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4769"}],"version-history":[{"count":13,"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=\/wp\/v2\/pages\/4769\/revisions"}],"predecessor-version":[{"id":5373,"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=\/wp\/v2\/pages\/4769\/revisions\/5373"}],"wp:attachment":[{"href":"https:\/\/profilecapital.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}