Islamic Mortgages

saad5440

No you have to be muslim to apply.. they are open to all...

theres another type of islamic mortgage where the bank buys the property for you, say for 100k and you agree to buy it of the bank for 25% above its value..eg 125k.. the banks makes its profit and you have a interest free mortgage with fixed monthly payments.

black-saturn

saad5440 wrote: »

No you have to be muslim to apply.. they are open to all...

You have to be muslim but they are open to all?

sinizterguy

Interest is now called rent. And it can now be marketed to a religious group. Great marketing work by the banks.

If the Bank of England base rate increases interest (called rent in this case) increases. Unless your deal which you signed says that the payments will be fixed, it will increase/decrease with the BoE base rate.

msmicawber

Hang on a minute - if lending and borrowing money is against the tenets of your religion, then couldn't you get in a mess spiritually if you get a mortgage? Also, if you were happy with that, would you be happy to go with a bank/company who descriminates against non-muslims? It sounds like an ethical mine field.

georgiasmum

Never heard so much rubbish in my life!!

margaretclare

I agree, Georgiasmum. It's weasel words, isn't it?

We Christians are also commanded to avoid 'usury', and I understand the difference of 'excessive' interest - this, the Bible says, is what 'grinds the faces of the poor'.

'Loan sharks', payday loans, organisations like Provident, would IMHO come into those categories. The kind of mis-advertising that goes on in daytime TV which encourage people to get into more debt, as Alistair Darling commented today. That's what is sinful - for us, anyway.

Margaret

georgiasmum

Margaretclare, I loved your post!

Mr_helpful

When you work for someone there is a profit for your labour.
When you sell goods there is a profit on the price you paid
When you lend money there is a profit on that money (we tend to call it interest)
if Muslims are against this 1) why do they come and live in a capitalist society? 2) Why are the goods in their shops not profit free.
I think the problem lies a long time ago when someone mis interpreted god when he said thou shalt not have false prophets.

pinkshoes

Anyone who falls for this Islamic mortgage mumbojumbo is deluded!

Interest is just profit, as a bank is a business, and unless you're telling me that every Muslim in the world works for nothing, then this is nothing but a poor effort to try and condone something forbidden in an outdated religion!

puddings_2

When i went with them initially, i was under the impression that i will be paying a fixed rate to them, so that my monthly repayments will stay the same throughout the years. I was very surprised then that my repayments increased quite significantly only in the first month. The reason the bank gave was that the rate for the 'rent' to the bank had actually been increased.

It depends which type of Islamic home finance you took out.

The most common form is Ijara. This involves the bank buying the property and then leasing it to you, the client. The monthly payments that you make are partly applied to purchase the property and part for the "rent". With this system the payments are fixed for twelve months at which time the rent/repayment is reassessed.

A variation is the Murabaha system. With this system the bank buys the property and then immediately sells it back to [STRIKE]the victim[/STRIKE] you, the client at a higher price. This is then paid off over a term of up to 15 years. As these repayments are fixed, this is similar in some way to a fixed rate mortgage.

You are almost certainly paying more than you need be, because you have an Islamic mortgage. There is currently relatively little competition in this market so the maximum terms, maximum income multiples and maximum percentage of property values all tend to be lower than with traditional mortgages.

If I was living in India or Saudi, would I be able to go into a bank and say "I'd like to a Christian mortgage please". Would I hell as like, I'd probably be lynched by a gang of neanderthols in the street. The trouble with the banks (and general public) in the UK is that they're too flaming politically correct and the banks are so concerned about their own wealth that they're prepared to ruin anything that gets in their way to make their wallets fatter.

My advice to you is ditch the Islamic mortgage and go traditional instead. If the mosque extracise you from your community then don't worry, you are welcome to come to church with me on Sunday instead.