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SarahBell

How About A Sharia Mortgage?

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Sharia compliant Islamic finance products from IBB

Unlike conventional mortgages and refinances, Islamic Bank of Britain's Sharia compliant Home Purchase Plans (HPP) and our rent & acquisition Buy to Let Purchase Plans (BTLPP) do not involve interest charges and are based on joint ownership.

Your monthly payment increases your share in the property and includes a payment for the use of the share that the Bank owns. At the end of the finance term you will own the property outright.

On our rent only BTLPP each payment only covers the rent that IBB charges on its share of the property. However, you won't acquire any of our share of the property. Instead you will need to put in place plans to acquire IBB's share at the end of the finance term. IBB provides competitive rental rates, with finance for your property generated from ethical activities considered lawful under Sharia.

http://www.islamic-bank.com/home-finance/

Oh and they do BTL too!

http://www.islamic-bank.com/home-finance/buy-to-let-purchase-plan/

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Does anyone understand why it is more ethical to charge rent than to charge interest? I'm genuinely interested in how Islam rationalises this.

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Sharia compliant Islamic finance products from IBB

Unlike conventional mortgages and refinances, Islamic Bank of Britain's Sharia compliant Home Purchase Plans (HPP) and our rent & acquisition Buy to Let Purchase Plans (BTLPP) do not involve interest charges and are based on joint ownership.

Your monthly payment increases your share in the property and includes a payment for the use of the share that the Bank owns. At the end of the finance term you will own the property outright.

On our rent only BTLPP each payment only covers the rent that IBB charges on its share of the property. However, you won't acquire any of our share of the property. Instead you will need to put in place plans to acquire IBB's share at the end of the finance term. IBB provides competitive rental rates, with finance for your property generated from ethical activities considered lawful under Sharia.

http://www.islamic-b...m/home-finance/

Oh and they do BTL too!

http://www.islamic-b...-purchase-plan/

Interest only liar loans ?

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Sharia forbids usury. Some interpret this as the charging of any interest and others as the charging of excessive interest.

These Islamic mortgages apply more to the former way of thinking. I think Allah would say that if it looks like interest and behaves like interest then it is interest.

Perhaps His team of legal advisors have advised him otherwise and pointed out that He left a loophole in the Koran and that He should have checked with them before speaking on the record.

Edited by Ah-so

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<br />Does anyone understand why it is more ethical to charge rent than to charge interest? I'm genuinely interested in how Islam rationalises this.<br />
<br /><br /><br />

One way it could be different would be if the "loan" was non-recourse. So you could walk away if you didn't want to "rent" any more.

With the particular loan mentioned earlier that would likely mean losing the "acquisition payment" - and that is if you actually can walk away (the website does not make that immedeately clear). AFAIK, they seem to be offering a conventional mortgage described using slightly different words than usual. They even do discounted variable "rent".

I love the way you can "rent" a house so that you can then let it to someone else .....

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same game ,different name.

Yes, exactly - For a moment someone had found an attractive rate lifetime fixed product, rather than one where your life is at risk if Carney decided to cause Carnage.

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Sharia forbids usury. Some interpret this as the charging of any interest and others as the charging of excessive interest.

These Islamic mortgages apply more to the former way of thinking. I think Allah would say that if it looks like interest and behaves like interest then it is interest.

Perhaps His team of legal advisors have advised him otherwise and pointed out that He left a loophole in the Koean and that He should have checked with them before speaking on the record.

God would see through any scam! If you are happy to believe the excess you pay back is rent for property use from the bank, rather than interest, the so be it! Some are happy with this scenario!

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