I heard that these were available now but can someone please explain how they work?
Sorry if I sound dumb.
Re: muslim mortgages
are you in england or pak?
Re: muslim mortgages
I think hsbc provides them, at least that is where a friend of mine is getting hers from. try the bank directly?
Re: muslim mortgages
yup thats right HSBC do them. They call them Amanah Finance.
Lloyds TSB also started a Muslim Mortgage recently.
Here is an extract from HSBC website which is self-explainatory....
**Amanah Home Finance is based on the principle of ‘leasing’, the ‘Ijarah’ plan lets you buy your residential property without compromising your beliefs. If you already have a traditional interest based mortgage, the plan allows you to refinance your property. **
**How it works **
**You choose the property you want to buy and negotiate the price with the seller. Alternatively, you may wish to repay a traditional mortgage and refinance your property. **
**Contracts will be exchanged either with the person you are buying the property from, or you in the case of a refinance. This will be a binding contract for the purchase of the property. A date will also be agreed when we will become the owner of the property and lease it to you. **
**Our solicitor will register HSBC's ownership of the property in its name. **
**Your solicitor or other legal adviser will register your ownership of tenancy in your name. **
**You'll need to make a monthly Amanah Home Finance payment to us for the term of your finance. The payments will be made on the 25th of every month, and will be collected from your account by Direct Debit. Your payment will comprise: rent, on-account payment and building insurance (and any other sums payable for a leasehold property). **
At the end of the agreed term, and when all payments have been made, you can exercise the promise to sell and we will transfer the property to you. "
Re: muslim mortgages
a better term would be interest free or shared ownership mortgages..the whole "halal" mortgages sounds funny when i think about..although the word "halal" dating ... tends to make me laugh a lot more..
Re: muslim mortgages
^ halal dating huh ! well that jus plain stupid !
i wonder wat halal dating entails though ! :)
Re: muslim mortgages
Your better off finding out properties from your local council or other housing associations, pay the rent weekly and in future buy it from them outright. They take the rent you’ve paid over the years into account. This is how I’m buying my property. Only have to pay around 10k to buy it outright so am gona keep paying my rent til it gets to level i can afford:D probably by this time next year it’ll be down to 8k which me and hubby will have saved by then (providing I don’t visit any boutiques or the Chanel counter:eek: ) But make sure that the housing ass. or council do give you the right to buy because i know some don’t.
Re: muslim mortgages
The whole idea is how does the financiar the Bank or the finance company make money? Now consider a property today is worth $200,000 you do a Halal mortgage for it. Over the period of 20 years how much would you pay. Are you going to pay $200,000 or $270,000. And if it is 270,000 no matter what you call it it is interest and it is no different from a regular mortgage, so why bother.
Re: muslim mortgages
^ don't confuse interest and profit..profit is allowed in Islam..interest which is exploitative is not...I believe there is a new bank as well which deals with interest free mortgages..I think Islamic Bank of Britain?
Re: muslim mortgages
And what is the definition of profit? Profit os on the base of production, what would these financial companies be producing? Secondly, when you buy a home worth 200K, get a loan from a bank, and pay back 270K. How could you call it profit? There has been no production the house has not multiplied. So what about the extra 70K. Yep this is interest no matter what you call it. Why do we muslims have to look for a cover a hide out place for everything. Drink beer but non alcoholic.
Yep now you would say this 70K would cater the inflation over 20 years. OK but then you know what inflation is a by product of interest.
In this world in 21st century where the whole international economy is based on interest. Thats on what the whole financial system is based upon there cannot be any non interest mortgages. The right question should however be it should be legal under these circumstances to mortgage your house. However if you are waiting for a halal mortgage you can call the rose by any name the fragrance would always be the same. Interest/profit???