Islamic Mortgages in The UK: The Definitive Guide – IslamicFinanceGuru

As someone who has recently taken out an Islamic mortgage in the UK, I know there’s a bunch of stuff that I wish I’d known at the start.

This 34-page guide is designed to do just that. We will cover everything you need to know as you start on this exciting new chapter of your life. This analysis and information has been compiled over the last 5 years across a whole series of articles and reports and is constantly being updated. It also nicely complements our Islamic mortgage comparison page.

Contents:

1. Islamic mortgage market in numbers………………………2
2. Islamic mortgages in the UK: How does it work? ……….3
3. Is an Islamic mortgage halal or haram? …………………..7
4. Types of Halal Mortgages……………………………………14
5. Best Islamic Mortgages in the UK in 2019……………….16
6. 15 Tips to get a Cheap Islamic mortgage…………………18
7. Wider Islamic Financing in the UK…………………….…..28
8. How to get an Islamic mortgage in the UK……………….29
9. Islamic mortgage UK Reviews……………………………..31
10. Islamic mortgage Guidance and Resources…………….32

Definitional tip: an Islamic mortgage is the same as a halal mortgage and a “home purchase plan” or “HPP”. We use the terms interchangeably in this guide, and so does the wider market. Don’t worry, they’re all referring to the same thing.

1. Islamic mortgage market in numbers

1. There are 6 providers of HPP products in the UK today.
2. There are approximately 2500-3000 residential and buy-to-let Islamic mortgages issued in the UK annually.
3. Only around 40% of Islamic banks’ incomes and financing assets are linked to retail products (i.e. products to do with everyday people like us). A large chunk comes from commercial and premier products.
4. Last year Al Rayan made a £6m profit from an income of £39m.
5. 7% of Muslim adults earn less than £20,000 per annum (p.a.), compared to the 53.1% of UK adults overall. 43.2% earn between £20,000 and £50,000, compared to the 39.5% of all UK adults. 7.1% UK Muslim adults earn over £50,000 which is similar to the overall UK picture which shows that 7.4% of adults earn in excess of this figure.
6. The majority, 59.5%, of Muslims live in owner-occupied properties. This is under the figure for all UK adults which is 67.9%.

2. Islamic mortgages in the UK: How does it work?

First, what actually is an Islamic mortgage? Well, in the UK there are roughly 3 types of Islamic mortgage structures…To access the complete Guide, please download here.