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Eligibility and deposits
What is the minimum deposit required for an Islamic Home Purchase Plan (HPP)?
The typical minimum deposit for a standard residential HPP is 5% to 10% of the property purchase price (representing your initial share in the Diminishing Musharakah partnership). However, some competitive tiers offer products at a 5% deposit for first-time buyers,…
What is the minimum deposit required for a Buy-to-Let (BTL) Islamic finance plan?
For an Islamic BTL plan, finance providers generally require a larger minimum deposit than residential HPPs, typically starting around 20% to 25% of the property’s value.
Are there minimum property value limits for Islamic property finance?
Yes. Most UK Islamic banks enforce a minimum property value, which typically stands at £100,000 for standard residential properties, though this can rise to £150,000 or higher for properties located within Greater London.
What is the minimum finance amount I can apply for?
The minimum finance amount across most UK Shariah-compliant providers is generally £75,000. Applications below this threshold are typically rejected due to processing costs.
Is there a maximum finance limit for premium properties?
Yes. Maximum finance limits range between £2 million and £5 million depending on the provider, the customer's financial strength, and the Finance-to-Value (FTV) ratio.
How do Islamic banks calculate affordability for a residential HPP?
Affordability is calculated similarly to conventional stress-testing. Banks assess your gross sustainable income against your existing debts, outgoings, and lifestyle expenses using an income multiplier (typically up to 4.5x or 5x income) alongside a comprehensive monthly net disposable income stress-test.
How is affordability determined for an Islamic Buy-to-Let (BTL) plan?
Instead of primary personal income, BTL affordability relies heavily on the Rental Income Multiplier. The projected rental income from the property must typically cover a minimum of 120% to 145% of the bank's rental payment rate under stressed financial market…
Can I apply for an HPP if I am self-employed?
Yes. Self-employed applicants are eligible but must typically provide a minimum of 2 years of certified accounts or HMRC self-assessments (SA302 forms) demonstrating consistent, sustainable profitability.
Do Islamic finance providers accept contract workers or freelancers?
Yes, provided you can demonstrate a continuous track record of contract employment (usually at least 12 to 24 months in the same line of work) with at least 3 to 6 months remaining on your current contract.
Can non-UK residents or expats apply for an Islamic BTL plan?
Yes. Several UK Islamic banks offer specialised expat and international BTL products, though these require higher deposits (typically 35% to 40%) and stricter anti-money laundering (AML) verification checks.
Do Islamic banks accept gifted deposits from family members?
Yes, gifted deposits from immediate family members (parents, siblings, grandparents) are widely accepted, provided the donor signs a legal declaration confirming it is an unconditional gift with no equity stake or repayment requirement.
Are multiple income sources (e.g., bonuses, commissions) factored into eligibility?
Yes. Providers typically consider regular, sustainable bonuses or commissions, but they usually cap their inclusion at 50% to 100% of the average received over the last 2 consecutive years.
What is the minimum age requirement to take out an HPP or BTL?
The minimum age at the point of application is 18 years old (some banks specify 21 for international or BTL applicants).
What is the maximum age limit at the end of the finance term?
The finance term must generally conclude before the oldest applicant reaches age 75 to 80, or their state retirement age, unless they can conclusively demonstrate a sustainable, guaranteed retirement income.
Do Islamic banks run credit checks, and can I qualify with bad credit?
Yes, UK Islamic banks are regulated financial institutions and execute full credit footprint checks. Mild issues like an isolated late payment might be overlooked, but active CCJs, IVAs, or recent bankruptcies will result in automatic rejection.
Property types
What types of properties are unacceptable for Islamic finance?
Properties constructed with non-standard materials (e.g., concrete prefab, thatch), studio flats under 30 sq. metres, properties directly above commercial premises (especially restaurants, takeaways, or pubs), and unmodernised properties lacking working kitchens/bathrooms are generally excluded.
Can I use an Islamic HPP to buy a leasehold flat?
Yes. Leasehold flats are acceptable, provided the remaining term on the lease is structurally sound—typically requiring a minimum of 70 to 85 years remaining at the end of the finance term.
Are Ex-Local Authority properties accepted under HPP criteria?
Yes, but they are subject to strict rules. Blocks must usually be under a certain height (e.g., maximum 4 to 6 storeys), have a high percentage of private owner-occupiers within the block, and possess working lift access if above the…
What are the criteria for buying a New Build property via an HPP?
New builds are fully eligible, but banks often limit their exposure by capping the maximum Finance-to-Value (FTV) ratio to 80% or 85% for new-build flats, alongside requiring an approved structural warranty (e.g., NHBC).
Do Islamic banks finance Houses in Multiple Occupation (HMOs) under BTL?
Yes, specific Shariah-compliant providers offer specialised BTL products for HMOs, though they require the applicant to be an experienced landlord and enforce lower FTV limits (typically max 75%).
What is the bank’s stance on properties requiring significant cladding remediation (EWS1 form)?
Properties requiring an EWS1 form must demonstrate a satisfactory rating (e.g., A1, A2, or B1). If remediation is required (B2 rating), the bank will generally decline finance until fully funded remediation plans and legal certificates are secured.
Can I finance a property that has an annex or multi-unit block structure?
Multi-unit freehold blocks (MUFBs) are accepted under specialised BTL criteria up to a certain number of units (typically a maximum of 4 to 6 self-contained units under one title).
Is Shared Ownership supported by Islamic HPPs?
Standard government-backed Shared Ownership schemes are generally incompatible with traditional bank HPPs because you cannot layer a bank's Diminishing Musharakah contract directly over a housing association's leasehold equity split. Specialised alternative providers (like StrideUp or Wayhome) cater explicitly to this…
Can I use Islamic property finance to buy land or build my own home?
No. Standard HPP and BTL products offered by UK Islamic banks do not cater to self-build projects or raw land acquisition; the property must be fully constructed and ready for immediate habitation.
Payments, switching and refinancing
How do monthly payments work on a standard residential HPP?
Your monthly payment consists of two distinct components: Acquisition Payment: An amount used to purchase a slice of the bank’s share of the property. Rental Payment: An amount paid to the bank for leasing the portion of the property that…
Are there “Rent-Only” (equivalent to Interest-Only) HPP options available?
Yes, for Buy-to-Let (BTL) plans, rent-only structures are standard. For residential HPPs, some providers offer rent-only options, meaning your monthly payment covers only the use of the bank's share, and you do not acquire more equity unless you make lump-sum…
How often are the rental rates reviewed on an HPP or BTL?
Rental rates are typically reviewed every 3, 6, or 12 months, or at the conclusion of a fixed-term product period (e.g., 2-year or 5-year fixed rental periods), aligning with prevailing benchmark financial market cycles.
Can I make overpayments to buy equity faster, and are there limits?
Yes. Most providers allow overpayments. Under standard terms, you can typically overpay up to 10% of the total finance balance per year without penalty, accelerating your equity acquisition.
What are Early Repayment Charges (ERCs) in Islamic finance?
If you pay off the plan entirely or exceed your allowed overpayment allowance during a fixed-rate incentive term, you will incur an ERC. This fee is calculated as a percentage of the outstanding balance to cover the bank’s administrative and…
How do I transition from a conventional interest-based mortgage to an HPP?
This process is treated as a refinancing operation. The Islamic bank will buy the property out of the conventional arrangement by clearing the outstanding mortgage balance, transferring the legal title into the new Shariah-compliant Musharakah structure.
Can I switch from an HPP to another Islamic provider at the end of my fixed term?
Yes. This is structured as a standard product switch or refinancing operation. The new bank replaces the old bank within the property partnership framework.
What happens if I want to sell the property before the HPP term ends?
You can sell the property on the open market at any time. The proceeds of the sale are used to clear the bank’s remaining equity share at its nominal value, and any remaining profit (capital appreciation) belongs entirely to you.
Are there product fees associated with setting up an HPP/BTL?
Yes. Providers charge product fees (either a flat fee like £999 or a percentage-based fee such as 1% of the finance amount), alongside standard valuation fees, bank legal fees, and your own independent legal fees.
What is the typical maximum term length for an Islamic finance plan?
The maximum structural term length for residential HPP products is 35 years, identical to conventional mortgage limits.
What is the minimum term length I can apply for?
The standard minimum operational term length across most UK Islamic banks is 5 years.
Can a business or Limited Company apply for an Islamic Buy-to-Let plan?
Yes. Major providers allow UK-registered Special Purpose Vehicle (SPV) Limited Companies to apply for BTL finance, provided the directors provide personal guarantees.
Is there an income stress-test variance between personal BTL and Limited Company BTL?
Yes. Limited Company BTLs often benefit from a lower rental income coverage stress-test threshold (e.g., 125% at a fixed rate) compared to higher-rate personal taxpayer name submissions (which often require 145%).
Can I add a third or fourth applicant to a residential HPP application?
Most providers allow a maximum of 4 applicants on a single HPP application, but they will typically only use the top 2 applicants' incomes when calculating the maximum affordability multiplier.
Can I get an HPP if I am an expat wanting to buy a residential home for my family to live in?
Yes, this is known as an Expat Residential HPP. The applicant lives abroad but finances a home in the UK for immediate family members (spouse/children) to occupy as their primary residence.
What documentation do I need to supply to prove my deposit source?
You must provide 3 to 6 months of continuous bank statements showing the accumulation of funds, investment liquidation slips, or clear audit trails if the money originated from property sales or inheritance distributions.
Do Islamic banks charge higher rates for older properties?
No. The age of the property does not dictate the rental rate tier. Tiers are entirely dictated by your Finance-to-Value (FTV) ratio and your personal financial risk profile.
What happens if the property appraisal/valuation comes in lower than the purchase price?
If the independent surveyor down-values the property, the bank will base its maximum finance offer on the lower of the purchase price or the valuation. You must either renegotiate the price with the seller or increase your deposit share to…
Can I choose a “Fixed Rent” period?
Yes. Banks offer 2-year, 5-year, or sometimes longer fixed product options where the rental rate is completely locked, protecting you from macroeconomic rental fluctuations for that duration.
Can I change my acquisition payment amount during the term?
Yes. Most banks allow you to amend your monthly acquisition schedule at designated review periods, effectively altering your overall financing term length.
Do Islamic banks participate in the “Help to Buy” equity loan scheme?
No, standard historic government Help to Buy equity loans are structurally incompatible with the co-ownership (Musharakah) deeds utilised by UK Islamic banks.
Can I use an HPP to purchase a property at a public auction?
Generally, no. The strict legal sequencing, property vetting, and Shariah documentation required to execute an HPP cannot realistically be completed within the standard 28-day auction settlement window.
Are there specific restrictions on the background of tenants in an Islamic BTL?
Yes. The tenancy agreement cannot be issued to businesses whose primary operations contradict Shariah values (e.g., renting the property to a commercial betting shop, an alcohol retailer, or an explicit entertainment company). Standard residential tenants are subject to no religious…
What is a “Retention” on an HPP offer, and how do I clear it?
If a surveyor identifies essential repairs needed to make the property safe, the bank may hold back a portion of the funds (a retention). Once you complete the repairs post-completion and provide surveyor sign-off, the remaining funds are released.
Does my employment status affect my product rate tier?
No. Your employment status determines your eligibility during underwriting, but once approved, you have access to the same product rate tiers as anyone else based on your FTV split.
Can I take out an HPP if my income is entirely foreign currency?
Some UK Islamic banks accept foreign currency income (e.g., USD, EUR, SAR, AED) for expat products, but they will apply a severe hair-cut stress-test (often reducing the recognised income value by 15% to 20%) to buffer against foreign exchange volatility.
Can I use a residential HPP to purchase a property and then immediately let it out?
No. Residential HPPs strictly mandate that the property must be occupied by the applicant as their primary home. If you want to rent it out, you must apply for or transition to a Buy-to-Let (BTL) plan.
What happens if I miss a monthly HPP payment?
Missed payments are subject to standard default administration costs. However, from a Shariah standpoint, banks cannot charge compound interest on defaults. Late fees are strictly limited to actual administrative recovery costs, and any excess punitive charges are donated to registered…
How Islamic finance works
What is the fundamental difference between a conventional mortgage and an Islamic HPP?
A conventional mortgage is a loan of money with interest, where the bank acts as a lender and uses the property as collateral. An Islamic HPP is an asset-backed partnership transaction where the bank and the client co-own the physical…
What is Diminishing Musharakah?
Diminishing Musharakah (declining partnership) is a structure where the bank and the customer jointly purchase the property. The property is split into equity shares. Over time, the customer systematically buys out the bank’s shares via acquisition payments until they achieve…
What is the Ijara contract, and how is it used here?
Ijara translates to "leasing". In an HPP context (Ijara wa Iqtina), the bank leases its share of the property back to you in exchange for a fair rental payment while you occupy the home.
What is a Murabaha property contract?
A Murabaha contract is a cost-plus profit sale. The bank purchases the property outright for an aggregate sum and immediately sells it to the customer at a marked-up, higher price. The customer then pays this fixed marked-up total back in…
Why do UK retail Islamic banks use Ijara over Murabaha for most HPPs today?
Murabaha functions like a rigid fixed-rate product; the total debt is locked at day one and cannot be easily altered. Ijara allows flexibility, enabling banks to adjust rental payments periodically to align with changing economic realities or market benchmarks.
If interest is forbidden, why do Islamic finance rental rates track the Bank of England (BoE) Base Rate or SONIA?
Shariah requires that rent be benchmarked against an objective, universally visible, and verifiable economic indicator to avoid uncertainty (gharar). Using the BoE base rate or SONIA as a pricing index is globally accepted by Shariah scholars because it simply serves…
Is it permissible to use an interest-based benchmark in a halal transaction?
Yes. Shariah councils have confirmed that using a standard financial index does not invalidate a contract, provided the transaction mechanics themselves are entirely halal (i.e., asset co-ownership and leasing, rather than a direct cash loan for profit).
Who sits on an Islamic bank’s Shariah Board?
An Islamic bank’s Shariah Board consists of independent, globally recognised Islamic scholars specialising in Fiqh al-Muamalat (Islamic commercial jurisprudence). They audit the bank's contracts, accounting sheets, and operational workflows to issue formal compliance certificates (fatwas).
Can an Islamic bank change its contracts without Shariah Board approval?
Absolutely not. Any modification to product structures, terms, or operational parameters requires a rigorous review and formal sign-off from the independent Shariah Board to preserve its halal status.
Who legally owns the property during an HPP term?
The legal title of the property is registered in the name of the bank (or held jointly via a trust structure) to protect the bank's investment capital. However, your equitable rights and absolute ownership shares are explicitly protected via a…
Does the bank’s name on the deeds mean I am just a tenant?
No. Unlike a standard tenant, you hold a registered equitable interest in the property. You benefit from 100% of any future capital appreciation, possess full rights of modification (subject to standard planning/building rules), and cannot be evicted unless you default…
What happens if the property value drops significantly during the term?
Under the nominal value model used by UK retail banks, your outstanding acquisition obligation remains pegged to the initial purchase price amount. If you decide to sell the property while it is in negative equity, you must absorb the loss…
Why don’t UK retail Islamic banks share in the property’s capital loss or gain?
If retail banks engaged in true variable equity profit/loss sharing on residential properties, they would violate strict UK banking regulations (PRAs/FCA capital adequacy frameworks) which mandate capital protection for depositors' funds. True equity risk products would also expose consumers to…
What is a Fatwa, and can I see it before applying?
A Fatwa is an official Islamic legal ruling verifying product compliance. All authorised UK Islamic banks openly publish their Shariah compliance certificates and individual product Fatwas on their websites for public review.
Does the bank have the right to inspect my home whenever they want since they hold the legal title?
No. The Ijara lease covenant explicitly grants you "quiet enjoyment" of the property. The bank cannot enter your home without your explicit permission, exactly like a conventional mortgage lender.
Are Islamic finance options open to non-Muslims?
Yes, Islamic property finance is completely faith-blind. Anyone can apply, and many non-Muslims actively use these products because they prefer the ethical, asset-backed transparency of Shariah-compliant models.
How does a conventional mortgage compare with Diminishing Musharakah and Murabaha?
Feature Conventional Mortgage Diminishing Musharakah (HPP) Murabaha Plan Core Legal Relationship Lender & Debtor Co-owners & Business Partners Seller & Buyer Primary Monthly Cost Basis Interest on loaned cash Rental for asset use + Equity purchase Fixed deferred instalment payments…
Tax, regulation and legal
Do I have to pay Stamp Duty Land Tax (SDLT) twice because the bank buys the property first?
No. Historically, this double-taxation occurred, but UK tax laws were updated via alternative finance regulations. Under current HMRC rules, Islamic property transactions are granted explicit relief, ensuring you only pay SDLT once, exactly like a conventional buyer. Before the law…
Are UK Islamic banks regulated by the Financial Conduct Authority (FCA)?
Yes. All authorised stand-alone Islamic banks in the UK are fully authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA). They operate under the exact same consumer protection laws as conventional institutions.
Are my funds protected by the Financial Services Compensation Scheme (FSCS)?
Yes. Deposits and funds held with authorised UK Islamic institutions are protected by the FSCS up to the standard statutory limit (currently £85,000 per person, per institution).
Can I appeal to the Financial Ombudsman Service (FOS) if I have a dispute with an Islamic finance provider?
Yes. Because these banks are regulated by the FCA, consumers have full recourse to escalate unresolved complaints to the Financial Ombudsman Service for an independent review.
How does the UK legal system treat an Islamic finance contract in court?
English courts interpret Islamic finance contracts strictly under English law, focusing on the clear text of the executed financial agreements. The subjective religious aspects or broader Shariah intent are treated as a matter of private contract configuration, not separate sovereign…
Is capital gains tax (CGT) calculated differently on an Islamic BTL?
No. HMRC treats the tax positions identically. When you sell an Islamic BTL property, your capital gains tax obligation is assessed based on the net profit achieved between your original purchase cost and final sale figure, mirroring conventional structures.
Can landlords deduct Islamic BTL rental payments from their tax returns?
Yes. Under the UK's alternative finance tax regime, the rental payment component paid to an Islamic bank is treated as the tax-deductible equivalent of conventional mortgage interest.
What happens legally if I default and the property faces repossession?
If you default on your payments and fail to remediate the breach, the bank can initiate repossession procedures under standard UK housing law. The property will be sold to recover the bank's remaining equity capital, and any surplus funds left…
Does the bank prioritise its capital recovery over mine during a forced sale?
Yes. Under the terms of the legal charge and co-ownership arrangements, the bank's nominal outstanding equity share and its associated recovery costs are settled first from the sale proceeds.
Can I use a regular conveyancing solicitor for an Islamic HPP?
You must use a solicitor who is explicitly registered on the Islamic bank’s approved legal panel. Because Shariah property transactions require specialised documentation (such as lease agreements and co-ownership deeds), the solicitor must understand these alternative finance structures.
Why do I have to pay for two sets of solicitors during completion?
During an HPP transaction, you must cover your own legal representation costs as well as the bank’s legal fees. This is because the bank must instruct its own legal panel to review the specialised co-ownership arrangements and secure its asset…
Costs, insurance and living with an HPP
Why is Islamic property finance often more expensive than conventional mortgages?
Islamic banks face higher regulatory capital compliance costs, lack the massive operational scale of centuries-old conventional institutions, and cannot access ultra-cheap interest-based wholesale money markets. These factors raise their cost of capital, which is reflected in slightly higher pricing structures.
Who is responsible for day-to-day property maintenance under an HPP?
Under the terms of the HPP agreement, you are appointed as the Managing Agent of the property. This means you assume practical and financial responsibility for all day-to-day repairs, decorative maintenance, and localised utility management.
Is it fair under Shariah that the customer pays 100% of repairs if the bank owns a share?
Yes, Shariah scholars have deemed this compliant because the customer enjoys 100% of the long-term capital growth and holds the exclusive right of occupancy. The lease agreement explicitly structures the maintenance obligation as a condition of the rental rate tier.
Who pays for Buildings Insurance in an Islamic property finance setup?
The bank typically arranges the building’s insurance policy to protect its legal stake in the structure. However, the cost of this premium is passed down to you, either as a separate annual fee or factored directly into your monthly rental…
What is Takaful, and must I use it for my property insurance?
Takaful is Shariah-compliant mutual insurance based on cooperative risk pooling. While using a Takaful provider is preferred, if a viable UK option is unavailable or uncompetitive, Shariah boards generally permit consumers to utilise conventional buildings insurance options under the Islamic…
What happens to my HPP if the property is completely destroyed by an act of God?
If the property is rendered entirely uninhabitable, the Ijara lease agreement naturally terminates because you can no longer utilise the asset, meaning your rental obligation ceases. The building insurance policy will then trigger to settle the outstanding capital values with…
Can I rent out a room to a lodger under a residential HPP?
Most Islamic banks permit you to take in a lodger under a standard rent-a-room structure, provided you obtain their formal written consent beforehand and remain a full-time resident in the property.
Can I perform structural renovations (e.g., extensions) to an HPP property?
Yes, but you must secure the bank’s formal written approval before starting work, alongside standard local planning and building control permissions. This ensures the structural integrity of their shared asset is protected.
If I extend the property and increase its value, does the bank own a piece of that increase?
No. The bank’s equity stake remains strictly pegged to its original nominal capital contribution value. Any equity value added through your own home improvements belongs entirely to you.
What happens if an applicant passes away during the HPP term?
The property arrangement forms part of the deceased's estate. If there is a surviving joint applicant, they typically assume full responsibility for the plan. If not, the estate must either clear the bank's remaining nominal equity share (often via life…
Is it mandatory to take out Life Insurance with an HPP?
While banks strongly recommend having adequate life insurance or a Shariah-compliant alternative to protect your family, it is generally not a mandatory condition for secure underwriting approval.
Common misconceptions
Is Islamic property finance simply a conventional mortgage with renamed words?
No, this is a common misconception. While the monthly outgoings look visually identical, the underlying legal, structural, and risk realities are completely different. A conventional mortgage relies on a debtor-creditor relationship where money itself is commodified for profit. An Islamic…
Why do some critics argue that HPPs mimic conventional mortgages too closely?
Critics often point to the fact that monthly costs are mathematically pegged to mainstream financial benchmarks (like the BoE base rate) and that consumers bear the maintenance burdens. However, Shariah scholars emphasise that structural compliance is determined by the legality…
Can an Islamic bank recall the finance amount suddenly and force me to sell?
No. As long as you maintain your monthly payments and comply with the terms of your co-ownership and lease deeds, the bank cannot arbitrarily terminate the contract or force an unexpected sale.
Can I use an Islamic HPP alongside a Help to Buy ISA or Lifetime ISA (LISA)?
Yes. You can use cash bonuses accumulated within a Help to Buy ISA or a Lifetime ISA toward your initial deposit share, provided your panel solicitor processes the government withdrawal tokens correctly during completion.
Can I equity-release cash out of my home using an Islamic HPP framework?
Yes. If your property’s value has increased significantly, you can restructure your plan to sell a portion of your equity back to the bank in exchange for a cash release, which increases your monthly rental payments moving forward.
Can an Islamic BTL plan be converted into a residential HPP later?
Yes. If you decide to move into your investment property, you must submit a formal change-of-use application to the bank. This involves a residential underwriting review to stress-test your personal income against affordability limits before transitioning the product framework.
Do Islamic banks charge an exit fee when you successfully buy out 100% of their share?
There may be a small administrative deeds-transfer and title-discharge fee to legally remove the bank's name from the Land Registry records, but there are no punitive penalties for naturally concluding your term.
Can I pay off the entire outstanding bank share early in one large lump sum?
Yes. You can clear the entire outstanding balance at any time to take full ownership of the deeds. However, if you execute this during a fixed product term, you may be subject to Early Repayment Charges.
What happens if the bank goes into administration or becomes bankrupt?
Your equitable ownership rights and your lease agreement remain fully legally binding under English property law. The administrators or any purchasing financial institution that buys out the bank’s assets must step into the original landlord/partner shoes, leaving your rights unchanged.
Are Islamic finance products available for commercial real estate properties?
Yes. Specialised commercial arms of Islamic banks offer Shariah-compliant corporate real estate financing based on customised Musharakah or Murabaha frameworks for commercial buildings, offices, and warehouses.
Do Islamic banks offer offset options against your daily savings accounts?
Currently, standard offset models (where savings balances directly reduce interest calculations on a conventional loan) are not widely available in the retail HPP market due to the structural complexity of blending liquid cash offsets with physical Ijara lease valuations.
Are joint-venture developments supported under standard retail BTL plans?
No. Retail BTL products are designed for purchasing ready-made rental properties. True joint-venture property construction development requires bespoke commercial Islamic project finance.
Can I transfer my current HPP balance to a new property if I move house?
This is treated as a property porting application. The bank must formally approve the new asset via an independent surveyor valuation and update the co-ownership deeds to reflect the new property's details.
Can I obtain an HPP if I intend to purchase the property via a family trust?
Most retail Islamic banks will not finance properties where the primary purchasing entity is structured as a complex private family trust. They require individual applicants or registered SPV Limited Companies.
Where can I check if a bank’s product is truly approved by a reputable Shariah board?
You can verify a product's compliance by reviewing the formal signed Fatwa displayed on the bank's portal, or by researching the credentials of the individual scholars sitting on their independent Shariah supervisory board.
Questions from our clients
Assalamualaikum w w. Which Islamic home purchase plan would you recommend to someone from Scotland? Please respond asap. Jazakallahu khairan.
Wa Alaikum Assalam wa Rahmatullahi wa Barakatuh. When it comes to securing Shariah-compliant property finance in Scotland, the options differ slightly from England and Wales due to distinct differences in Scottish property law and land registration. Currently, the availability of…
what are my options for a remortgage, from a conventional banking mortgage to one of your products?
Yes, it is entirely possible to switch from a conventional interest-bearing mortgage to a fully Shariah-compliant structure. This process involves replacing your current conventional arrangement with an alternative finance product. Depending on whether the property is residential or commercial, your…
Can I remortgage my commercial property which has been paid in full, to purchase another commercial property or land? Via halal means?
Yes, this is entirely possible, subject to terms and conditions. To structure this type of Sharia-compliant finance, our finance providers utilise the Commodity Murabaha model. If you are looking to release equity from your fully paid commercial property to fund…
how can I cancel my phonecall appointment?
To cancel or change your scheduled phone appointment, please follow these quick steps: Open the confirmation email or calendar invite you received when you booked the session. Scroll to the bottom and click on the “Cancel” or “Reschedule” link. Confirm…
I’m looking for a buy to let mortgage. The house value is between 75-90k and I have a deposit 25k. Is this something you can give a mortgage for?
At the time of writing, the minimum property value for a halal BTL Purchase Plan (we don’t do mortgages) is £94,000. We can not assist on a property price/value less than this.
As Salaam Mualaikum, just wanted to ask have you any knowledge on a company called stride up? Would you recommend Jazak allahu khairan
Wa alaikum salaam. Yes. We are a key partner of StrideUp, and every now and again, we had exclusive rates with them, too. We like StrideUp, but all customer needs are different, and we will advise on what we feel…
Is there anyone other than Al-Rayan and Gatehouse the provide HPP in UK?
Yes. In fact, Al Rayan Bank no longer offers Home Purchase Plans in the UK, but we have a few other alternative options. Book an appointment with one of our advisors to discuss your needs.
Are you a HPP broker?
Yes. We are an FCA authorised broker specialising in advising on and arranging mortgage alternative Home Purchase Plans that are shariah-compliant.
I was recommended by a friend to your services.
![image Thank you for getting in touch. The bulk of our clients come through recommendations. In order for us to assess your case, please start with completing our eligibility form and then booking a phone appointment to speak to one…
Do you provide islamic finance in Northern Ireland?
Unfortunately we don’t have any products for Northern Ireland. ![image
Hello, I have a question re. a BTL mortgage via a company structure. Firstly, what is the minimum amount of deposit accepted? Secondly, I noticed that the minimum amount that one c
Thank you for your message. We don’t offer mortgages. We only offer the halal alternatives to mortgages. Islamic principles prohibit the profiting from any lending, therefore, you can’t borrow anymoney on these plans. Therefore, you will be entering a co-ownership…
Do you guys offer Islamic mortgages
We can you with halal alternatives to mortgages, yes. The term “Islamic mortgage” can be considered inaccurate and misleading since Islamic finance principles prohibit the payment or receipt of interest, and therefore, no loan is offered, and no borrowing takes…
I am wanting financing for a self build. Do you guys broker commodity murabaha?
Yes we do. Development finance is only available to companies and the development has to be for commercial purposes, in other words, we cant help you get funding for a self-build you will live in.
Most of these so called halal mortgages are more oppressive than the mortgages taken from a bank. Leave them both!
We think what you mean to say is, at the time you were comparing to a conventional mortgage, you found it more expensive. Sadly this can be true (it definitely is true at the time of writing) for a number…
Hi, do you do halal remortgage?
Yes we do. Though you wouldn’t technically be “re-mortgaging” because a home purchase plan is not considered a mortgage. But we know what you mean. We can help you pay off your existing mortgage/finance using a shariah-compliant option and we…
First time buyer looking for a 10% deposit home purchase plan.
Yes we can help. Please complete our eligibility form and book and an appointment to speak to us. You can view all our 10% deposit products here .
My husband and me live in Glasgow. We would like to buy a house following sharia rule. We are both PhD holder ls working in biotech companies. Can we discuss? If I have understood
We cannot currently assist on properties in Scotland. If you wish to buy a property in England or Wales (maybe for investment purposes or you plan to move), then e can assist. Please book an appointment to speak to one…
Do you do Islamic home insurance
We are not authorised to deal with insurance, nor are we aware of any shariah-compliant policies
I wanted to find out the percentage deposit required for a BTL mortgage. I also wanted to know the minimum finance amount for BTL.
BTLs require a minimum of 20% deposit. At the time of writing, the minimum finance amount is £100,000. You can monitor the BTL products, including deposit requirements and minimum finance amounts here on our Islamic BTL products page. Islamic BTL…
I have an offer on a property accepted and I need to borrow more than 4.5 times my salary, around 5.2 times my salary. I will be putting down 20% deposit. Can you help
Technically, we can go up to 6.5 times your income. We can even add other types of income like child benefit, dividends, etc. At the time of writing, the high rates does mean a lot of people probably would not…
Good morning if I have a current mortgage and change it over to halal option with the remaining amount I have outstanding is that an option I can do if you can give me some more in
Yes - you can refinance your conventional mortgage to a shariah-compliant alternative. The way it would work is this: 1. You currently your own house with the current mortgage provider having a legal charge on it. You would sell a…
Asalaamu Alaikum, I am looking to purchase a home. I am self employed. I am looking for Islamic Home purchasing assistance. Do you actually provide the means to do this or is this
Wa alaikum salaam We can help insha'Allah. We don’t finance the property our self as we are only the broker. We work with 3rd party finance companies to help our customers. We have access to various product which you…
hi there, how can i get personal loan
We are sorry we cannot assist with any personal loans. We are only brokers and we would find it hard to convince a finance company to provide finance without any profit. Any profit on a loan would be #haraam (riba).
looking for a commercial mortage
Yes we can help. Please book an appointment to speak to one of advisors here: /appointment.
Asalamualaykum, I was looking into the Lifetime ISA account and was wondering would and halal mortgage qualify to be able to use LISA funds to buy a first home? JazakAllah
wa alaikum salaam Yes, using your LISA as a deposit towards a new home purchase plan is fine.
Hi I wanted the eligibility form for buy to let properties
Hi Please use the same form as home purchase plans: /eligibility . There will be a question that will ask whether you plan to live in it or let it out. We will take it from there. Thank you.
Alsalam Alaikum, I’m planning to buy my first house in Glasgow and have saved money for a deposit of 15% of a possible average property price in the area I’m looking to buy at. Can
Wa alaikum salaam Unfortunately at the time of writing, we don’t have any products anymore that we can use to finance property in Scotland. We are sorry that we can’t help you.
Alsalaamu alaikum wa rahmatAllah, I can see alot of help with financing property within the sharia but is there any help with halal savings accounts? I have money in a trust fund a
wa alaikum salaam We don’t advice on investments or savings, but many banks offer shariah-compliant savings accounts and other investment accounts too. Search Al Rayan Bank, Gatehouse Bank, Wahed Invest, BLME, to name a few.
i want to apply for a mortgage on my paid house please
We don’t help with mortgages. We only assist with shariah compliant alternatives to mortgages. The products we use are normally based on co ownership agreements where you lease the bank’s share of the property. If you are happy with this,…
Hi. I wanted to enquire what is the minimum wage a person needs to be earning to qualify for the halal mortgage? Thank you, Hafsa.
This is dependant on the provider but the absolute minimum is £15,000 per annum (sole income). Most banks will have a cap on how many times your income they would look to finance (say 4.5 to 6.5 times your income);…
Can I discuss Halal options with you please.
Yes of course. We can help with Home finance Residential BTLs, including: Ltd Company (SPV) BTLs Partnership BTLs BTLs through trusts HMO (houses with multiple occupation) MUFB (multi unit freehold buildings) Commercial BTLs Bridging Finance Development Finance Refurbishment Finance Small…
Do you accept ISA for deposits?
Yes, you can use your ISA savings (including Help to Buy and Lifetime ISA and the bonuses they provide) to use towards your home deposit.
Hi. I heard that you stopped finance buying houses due to current economic issues. Is this true?
Thank you for your message. This is not completely true. Yes it is true some banks have stopped financing new purchases temporarily; they stopped well before the recent press and havoc caused by the mini-budget. But there are still other…
A group of friends and I are looking to set up a Ltd company from which to purchase properties over the next 10-30 years. I wanted to enquire furthur about shariah compliant produc
We can help assist with Ltd Company (or SPV) BTL, this is not a problem normally. In theory you can have as many shareholders as you want although some banks may restrictions you to 4 shareholders only. There are no…
Assalamualaikum, I wanted to know if you can help with an Islamic mortgage or an alternative. I would like to remortgage for £300’000 on my parents house which is approximately val
وعليكم السلام We would need to the purpose of releasing the funds as not all reasons are acceptable by the banks. £300,000 finance on £50,000 might be possible depending on your circumstances although with rising costs and rates, this is…
Can I purchase a shared ownership property using your service?
If you wish to buy outright a property which owned under a shared ownership scheme, yes, you can do this. Unfortunately, you can’t use a home purchase plan to buy a part share in a shared ownership scheme. Don’t forget,…
Will you save me money on a home purchase plan if I use you as my broker vs going out to the islamic banks myself?
Most of the time, we only have access to the same products offered directly by the banks. Every now and again, we do access to exclusive rates. Our last exclusive product (which was cheaper than going direct) finished a couple…
Mortgage
Not sure what the question is… but mortgages are haraam. See definition of mortgage: ![image If the intention is to lend (or borrow) money as per the diefinition above, then any profits derived from a loan is not permissible for…
There is a mixed-use property that i am going to buy can it be refinanced or not
Yes. We can do mixed use properties through a specialist provider. Their profit margins are high unfortunately as they rely on crowd funding through investors (the way we think this should be done). Please get in touch to discuss further.…
Assalamualikum,I have bought a property outright with no mortgage on it. I want to remortgage it and get a buy to let on it.i then want to buy another property.
وعليكم السلام Thank you for contacting us and we are pleased to hear you have no mortgage on it. We can help with Islamic BTL plans; please book an appointment to discuss your options with one of our advisors. Link…
I’m contacting you on behalf of my daughter who urgently needs an interest-free loan for £20,000 for a deposit on a secured new-built apartment in Manchester and hope you can help.
Thank you for your message. Unfortunately, we can’t help with any loans. We can only assist people to buy their property in partnership with a financier, no lending/borrowing takes place.
Hi, do you do halal mortgages options
Hi. Yes, we help people acquire their property using alternative methods to taking out a conventional mortgage; the alternative methods mainly use a co-ownership model with lease amd therefore a halal option.
Hi, do you do council right to buy properties?
Hi. Unfortunately, we can’t assist with council Right to Buy properties.
Do you give Islamic mortgages please
Short answer: Yes. But: read this: Halal Options | Islamic, Mortgage Alternatives Do you do islamic Morgage Yes and no. We help people buy their property using halal methods (so yes). These alternatives to mortgages are Halal Options | Islamic,…
I am currently living in Ireland. Do you offer non-residents Halal loans for buy-to-let properties?
Yes. If a foreign national, not resident in the UK wishes to buy residential property in the UK for investment purposes (buy to let), we can help them.
Assalamu Alaikum. Do Islamic lenders provide products for Serviced accommodation (e.g. Airbnb, Booking etc)?
Wa alaikum salaam 1. Islamic Banks are not “lenders” - if they were, the product would most most likely fall outside of the shariah-compliant category. 2. Yes, we do have access to a shariah-compliant product for self serviced accommodation albeit…
I’m looking to buy a buy to rent property and was looking for an Islamic approach to home financing. Can I please have some more details on this.
You will need to have income to cover your own personal expenditure, and the property in question needs to bring in enough rent to cover the banks rent by a certain percentage. Exact rent cover required depends on your circumstances…
Hello I would like to ask how much deposit do I need for a galah mortgage please. Many thanks
We don’t do mortgages. We offer halal alternatives to mortgages. With such alternative Home Purchase Plans, first time buyers require a minimum of 5% deposit, home movers require 10%, and for anyone that plans to let it out (buy to…
Hi there I want to buy a hose in London in halal way
Okay… we don’t sell hoses, but we can help you finance your house Insha’Allah using a halal option. Please provide some details here: /eligibility
Do you have any experience of property financed through Strideup or CrowdtoLive and analysis of the differences between the two?
Yes. We have worked with both. StrideUp offers a regulated Home Purchase Plan based on co-ownership with part rent only, and part rent and acquisition arrangement. Crowdtolive on the other hand is a pure co-ownership model where you will pay…
halal mortgages
We don’t like this term. Because if we search for a definition of a mortgage, we get this: a legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor’s…
Hi, I am interested to know halal option for buying a house. Can you please help
Hi First, we need to check your eligibility. Please complete the following form: /eligibility. Then, book an appointment so we can go through your details and work out what we can do for you: /appointment.
I want to purchase a property in London with a halal home purchase plan, would you be able to help? Also, all your social media platforms and website are not up to date, is this a
Okay… This is embarrassing. Yes, we are a legitimate and live company. Unfortunately, we aren’t too great at social media and agree; it is all probably out of date. But we are awesome at sorting people’s homes out. Have a…
Hi Halal options team, I’m wondering if you are providing Islamic Home Purchase Plans for resident in Northern Ireland. There a growing Muslim community looking for such scheme. I
Unfortuantely we are not aware of halal options to buy property in Northern Ireland. We are sorry we can’t be of any assistance. We pray you find a halal way to purchase.
We own a property outright. Is it possible to take out a loan on the property to enable us to pay back the family loans that were used to purchase the property in the first place?
As mentioned in prevoous posts, we dont assist with loans. All profits paid on a loan is a riba. You can release equity from property for a number of reasons. Not all banks will allow you to use it to…
I am in need of a bridging loan to purchase a property whilst I wait for my house to sell will it mean that I will have to pay stamp duty as I will have 2 properties albeit very te
We don’t get involved in any “loans” or “lending”. To keep it shariah-compliant, we rely on partnerships with a lease (musharakah with Ijara) or trade agreements (murabaha based). To answer your question, yes, we can assist with short term bridging…
Hi… I am a doctor, came to UK 6 months ago on tier 2 visa… i plan to buy a house in a few months time… will you be able to finance this on tier 2 visa? Many thanks
Being on a Tier 2 Visa is fine for someone wishijg to apply for a mortgage alternative home purchse plan. The following conditions have to be met. Foreign Nationals Resident in UK: • Maximum FTV: 80% • Have a valid…
Salams – I’m looking for a solicitor in Blackburn who can complete my purchase of my property. I have an HSBC Amanah Finance hence can you help?
Wa alaikum salaam If you need a solicitor in Blackburn, try searching for Blakewater solicitors. They should be familiar with HSBC Amanah.
If I buy a buy to let product, would I be able to rent out to my son/daughter ?
No. If you wish to let a property to your son or daughter, you would need to apply for a normal home purchase plan and be able to prove you can afford the monthly instalment on your own income. Once…
Salaams, I have been self employed for around 6 years and am looking to remortgage so much with the same company I done work for as self employed, I have now become an employer to
وعليكم السلام We are not sure what you mean, however, if you mean you are registered as an employee of the same company you have been running as an owner in the past, it makes no real difference to the…
What is the minimum home finance amount currently available in England from halal lenders please? I have noticed Al-rayan have recently increased the minimum property value and bor
Minimum amount any home finance provider will offer towards a property is £50,000 subject to conditions. Please note: you mentioned “borrower” amount. You are not borrowing any money in a Islamic Home Purchase Plan, nor are the banks “lenders”. Tgey…
Hello, My name is Sarmad Aslam and I work as a Doctor in the NHS. I am looking for Islamic finance for residential buy to le properties as well as commercial properties. Do you hav
Yes. We can help with both buy to let residential properties and commercial property . Please book an appointment with us to discuss your needs and eligibility further.
Hi… I am a doctor, came to UK 6 months ago on tier 2 visa… i plan to buy a house in a few months time… will you be able to finance this on tier 2 visa? Many thanks
Being on a Tier 2 Visa is fine for someone wishijg to apply for a mortgage alternative home purchse plan. The following conditions have to be met. Foreign Nationals Resident in UK: • Maximum FTV: 80% • Have a valid…
what is the minimum bridging finance loan i can take out
The minimum bridinging finance you can apply for in Islamic Finance is £100,000. Please note, it is not a loan. They use a commodity murabaha structure; after selling commodity you purchased on credit, you are left with £100,000. Please book…
Hello, I want it buy house in Belfast, Northern Ireland. Which Islamic bank deals this?
Unfortunately we don’t have any options for Northern Ireland at the moment, sorry.
mortgage in northern ireland
Unfortunately not I’m afraid. We don’t do mortgages anyway. We help with halal alternatives to mortgages. And we don’t have any options for Northern Ireland, sorry.
Assalam o Aliekum, Did you do remortgage in Scotland. Shahid
Wa alaikum salaam. We can help with refinance in Scotland. Yes.
Salams – I’m looking for a solicitor in Blackburn who can complete my purchase of my property. I have an HSBC Amanah Finance hence can you help?
Wa alaikum salaam If you need a solicitor in Blackburn, try searching for Blakewater solicitors. They should be familiar with HSBC Amanah.
Hi,I was wondering if you can help as well in personal loan to buy a car .. As I am looking for a Halal loan. Thanks!
Thank you for getting in touch. Unfortunately we are not currently aware of any halal personal loans for car purchase. Please google Ansar Finance. Many years ago they used to offer such services, we are not sure about their current…
can i refinance my current home to purchase another property to live in?
Yes. You can refinance your current home to purchase another property to live in.
Do you do islamic Morgage
Yes and no. We help people buy their property using halal methods (so yes). These alternatives to mortgages are (in our opinion) wrongly coined as Islamic Mortgages (so no). We don’t think it is correct to call these products this.…
How can I access the eligibility form in English? I can only see the Arabic version.
You will need to check your browser settings. Your browser language must be set to Arabic. Our form was designed in English.
We are looking to borrow is £10000 how do I speak to someone about this please
We are sorry. We can’t help with any loans. We only offer halal alternatives to loans or mortgages that are Islamic/shariah-compliant.
Do you finance ireland
We can’t advice on Islamic Home Purchase Plans in Ireland. We don’t know of any provider’s out there. We can only assist in England, Wales and Scotland. If any of readers know of islamic providers in Ireland or Northern Ireland,…
Assalamualikum,I am trying to find an Islamic alternative to a conventional mortgage to help me buy a ‘Right to Buy’ property I currently live in. I have not come across any yet si
Wa alaikum salaam Unfortunately, we can’t help people who wish to buy a house under the Right to Buy scheme. Under Right to Buy, the housing association is likely to want a legal charge on the property for 5 years.…
How much mortgage I can get?
Nothing. We don’t do mortgages, we deal with halal alternatives to mortgages only. In a mortgage alternative home purchase plan, you’re asking the bank to buy in partnership with you. You want to know how they would be willing to…
Salaams. Do you also offer your services to those who want to buy a house under right to acquire from a housing association
Wa alaikum salaam Unfortunately, we can’t help people who wish to buy a house under the Right to Buy scheme. Under Right to Buy, the housing association is likely to want a legal charge on the property for 5 years.…
How can I get Islamic mortgage to buy house in Surrey
Yes. We can help you buy a house using a halal home purchase plan in Surrey. In order for us to work out what you would qualify for, you would need to provide us with some details like your income,…
I would like to ask about mortgage. like upto how much I can get and how much do I need to give you first. Thank you
Hi. We don’t do mortgages. We only offer help with the halal alternatives. The stuff that others call “Islamic mortgages” but we don’t like that term either; it’s not a mortgage - we call halal home purchase plans. In order…
Help to.buy
There are currently no shariah-compliant finance options under the Help to Buy scheme. The current schemes on offer are not shariah-compliant and therefore not compatible with an Islamic Home Purchase Plan. The previous Help to Buy Mortgage Guarantee Scheme withdrawn…
How much am I able to borrow?
Nothing. In an Islamic Home Purchase Plan, you’re not borrowing anything like you do in a mortgage. You’re asking the bank to buy in partnership with you. You want to know how they would be willing to contribute towards the…
Can I use my savings in the government Help to Save scheme to use as a deposit towards an Islamic Home Purchase Plan?
The bank would allow you to use any funds you can prove are yours and acquired through legitimate means, so yes, you can use money in your Help to Save scheme towards halal, mortgage alternative Home Purchase Plan. However, the…
Is the government Help to Save scheme halal (permissible)?
We are not qualified to give our own verdict, however, according to the ulema on the Al Qalam shariah scholar panel, the Help to Save scheme is not permissible (not halal). You can read the full fatwa on their website…
is Poland in your scheme?
We can help customers from Poland buy a property in the UK. Whether British expats working out there, or Polish nationals. This can be both to live in when visiting the UK, or as an investment (Islamic But to Let).…
Assalamualykum, If I want to buy a house for 300k how much deposit i need and what sort of monthly income I’m looking into?
UPDATE (02/09/2020): We can now finance up to 95% on Islamic Home Purchases Due to the Covid-19, the maximum finance we can currently assist with is 85% 95%. This would mean you would need a deposit of £45,000. Rates are…
Salaam, do you do commercial islamic financing in Utah? Thanks
Wa alaikum salaam. Unfortunately, we can’t assist on properties in Utah; we can only help with financing UK property. We can take applications from international customers who wish to buy in the UK.
Hi can you arrange commercial property finance? Property cost around 700m gbp
Yes. We can assist with Islamic Commercial Property Finance. However, if you actually meant £700m purchase price, I am not sure how many providers could look at a deal of that size. Please send us an email on info@halaloptions.com with…
Hi. Just a quick message to let you know that 2 domains are available . I am a digital assets and domain trader. I would rather give be willing to sell them to an Islamic operator
Sounds great. But you need to contact us with your details so we can continue with this conversation. Please email us on info@halaloptions.com with more details.
In an Islamic Home Finance application (i.e. Islamic Mortgage if I can call it that), where the bank asks for certified copies of documents, who can certify the documents?
! All documents need to certified as 'Original Seen' by one of the professionals listed below. ## How to certify documents: For ID (Passport or Driving Licence) documents, the certification must have the following wording: This is to certify that…
Is the minimum deposit amount still 10%?
No. The minimum deposit for home finance is now 5% for Home Purchase Plans. You will need a 20% deposit for Buy To Let Purchases.
I am looking for a Islamic / Halal Commercial Property Finance to purchase a commercial property valued at £350,000.I can arrange 25% deposit. I am self employed with enough income
Yes, we can help with the financing of commercial property finance. Whether or not you qualify is based on a number of factors, including the location of the property, what it will be used for, whether you will occupy for…
Hi is anyone there?
Yes. We’re here. If you need us to contact you, a phone number or email address would help in all messages 😉