Alternative to Islamic mortgage?

handytips

I really would like to see the passage in the koran which explains how a Sharia compliant mortgage is to be arranged. Especially as the author couldnt read or write.

Southend1

Thanks Holly. I've read a bit about it on Wikipedia now too and I kind of get it, though I doubt I could explain it to anyone if they asked me!

rosie383

Thank you for all your posts Holly Hobby.
We have an appt with the Islamic finances guy at the HSBC later in the week. Seems to be just right for us. We can borrow a minimum of £25k which suits, and can repay a minimum of £5k extra every 6 months so will be able to pay off what we owe as quickly as possible.

As for the arrangement of Shariah compliant mortgage being in the Quran, it is not detailed there. It is just very clearly stated that to pay or benefit from interest is forbidden. If a loan shark charges £100 interest on a loan of £200 over just one week, for example, with the amount going up and up, that would not be allowed. However, if I wanted to borrow £200, and the lender said that I would pay £300 back to them over a certain period of time, that would be fine, as it is a very clearly agreed contract between 2 parties. I hope I have explained that correctly.

holly_hobby

No the Qur'an details Sharia as its application within Islamic Law - not the applicaton of mortgages (which I doubt were around when it was derived).

Good luck with your adviser Rosie ...

H x

holly_hobby

Southend1 wrote: »

Thanks Holly. I've read a bit about it on Wikipedia now too and I kind of get it, though I doubt I could explain it to anyone if they asked me!

Yes its quite a complex area of FS (I'm familiar with it because of the nature of my previous roles).

And you can see why you would need an adviser who understands and is respectfully appreciative of your beliefs and what you are trying to achieve, with access to the relevant providers.

At least if you do ever want one, you now know the basics !

Holly x

besti

CapJ wrote: »

I wouldn't. They flog people for this sort of thing.

No, they flog people for selling alcohol. This would not be called alcohol. It is fizzy apple juice that make you feel funny. Therefore, Sharia compliant.

Alternatively you could get stoned!!

mondello

http://www.mho.co.uk/content/1/30/eligibility-criteria.html
http://www.emhomebuy.co.uk/main.cfm?type=AMIELIGIBLE

I don't know what area you are in so not sure if these are any good. Whilst you may not be eligible due to not being first time buyers you may be eligible if you can prove a need for bigger housing eg. overcrowding, children of different sex (one over 10) sharing a room and not having sufficient income to fund this yourself. I think this could really be your only route.

rosie383

Thanks Mondello, but none of those criteria would apply to us.