Islamic mortgages

Very_Cute

Can anyone tell me the pros & cons of using this type of mortgage? Thinking of buying next property in this way!

Thanks

_Andy_

Try searching the forum, this has been discussed in length on a couple of occasions. Click search this forum then put in islamic mortgages

Andy_L

In short the pros are they salve your religious consience, the cons are they are more expensive due to a lack of compitition

Fairdo_2

On top of the stated fact against because of current lack of range available, my understanding is that there is another big down side to Sharia Law Mortgages and that is that there are two incidences of stamp duty. Apologies if this has been mentioned before in the other threads. (Haven't time to trawl and read complete threads I'm afraid). This is because the lender buys the property for you (technically) and "rents" the property to you for the mortgage term. At the end of this stated period, the lender then "sells" the property back to you. I'm fairly sure that the lender would make you liable to their incidence of stamp duty for their "purchase".

Mr_helpful

A belief is something you either dont know or have no experience of and tends to get in the way of truth.
Why on earth anyone would want a mortgage just to satisfy a religious belief god only knows. In reality its just playing with the word interest for the sake of it. When in rome do as the romans. Have a good old fashioned British mortgage. After all they are cheaper and this is a money saving forum.