Halal (lawful) Mortgage

margaretclare

Phonix wrote:

I know I'll probably get slapped for saying this but Catholicism veers away from Christianity on a number of points and isn't considered Christianity by a lot of Christians.

I hadn't quite thought of it that way, but it certainly bears little relationship to the kind of Christianity which I practise.

Aunty Margaret

purply

just to clarify-might have been said already. if so sorry!

'halal' mortgage (available to all, not just Muslims, usually 'ethically' minded people are interested in this sort of finance too), means that both parties are taking the risk. so...you want to buy a house-normal mortgage means that YOU, the buyer is taking the risk and hence got a lot more to lose than the bank.
halal mortgage-both take the risk. yes there is profit involved (its inevitable), but its not exploitation. you must remember its the PRINCIPLE of the thing and thats being fair. thus receiving and giving interest is not permitted.

purply

Rothy

Phonix wrote:

***Edited by MSE Controller2***
I don't think this is strictly true. The prices also reflect the level of investment in housing, which would inflate the prices? The demand for housing pushes the prices up? and the property developers + owners or part owners cashin on the demand for housing by raising prices?

I'd have thuoght it's a demographic trend more than just an economic, more people, more housing demand, higher prices.

Availibility of finance increased demand, and , as a previous user has pointed out creates wealth which in return is another inflationary pressure.

The rate, and availability of finance are a huge driver of prices both in the long term and short term, which is why in 2004 House prices were one of the main concerns at every Bank of England meeting on Interest rates.

Cheers
Matt