Are Islamic Bank Mortgages & Home Loan Plans Permissible? | Shaykh Abu Eesa | Faith IQ

House purchase plans for Muslims are struggling in US and Canada. The Muslims countries and recently the UK is doing better. Some people comment on this issue and point out this is making riba halal but that is a very narrow minded view.
For instance the loan that Islam house purchase plan offers based on diminishing partnership is allowed. Where you and the bank are partners. The institution that provides this service has to be run by competent scholars.
Shaykh Abu Eesa answers and explains....
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[@thefoodboxmcr]

What about the agreement in the contract that if something breaks in the house you take responsibility and not the banks and if there is a down fall in the market you still owe bank and they lose nothing????

[@cuezed]

That x rate is the bank of England interest rate

[@beyofbeys6448]

Has not convinced me it’s permissible by any means.

[@samrois3044]

Shiekh how about the opinion all mortgages are permissible even if they call the profit interest? The bank in all conventional mortgages are the shared owner of the property, they put a charge on the property and it is they who give the authority to sell and have the absolute authority to sell if you cannot keep up with the payments. They're ownership takes precedence over yours until you've completely paid them that initial agreed amount. In effect this transaction takes the form of Baiul Ajl as accepted by many scholars. The problem with islamic type mortages is that they are simply charging double the normal rates for essentially a similar product.

[@roberthannah7983]

They are financing the house for you. So there is a subtle difference between 'loan' and "finance". Why would Allah really care which way you did it?

[@AA-ix1bd]

Please confirm the scoholars and ulema that have confirmed it is permissible to do this.

[@nassah2010]

so its a co ownership

[@ua6765]

Sheikh, which bank provides this? I couldn’t find one in the U.K. please inform. Jazakallah.

[@FaithIQOfficial]

www.alrayanbank.co.uk

[@emadbarday5474]

Gatehouse bank does too

[@ua6765]

FaithIQ Jazak’Allah Khair. Appreciate the reply and the time taken out by Sh. AE to reply. I also appreciate and support Faith IQ.

[@ua6765]

Asalamualaikum Sheikh. Is it permissible to take out a Buy to Let property mortgage from the same Islamic Bank?

[@fishing-gardening-travelling]

Islamic bank need to lower their prices. I got a quote and its double the price when compared to the non Islamic mortgages. The excuse that Islamic bank has only 80,000 customers and other banks have over 60million customers is a weak argument. Lower your price and even non Muslims will take out an Islamic home purchase plan. People don't care if its Islamic or not, they just want it cheap so they can easily get more customers. These greedy shareholders need to lower the price. Its the same as a guard of the mosque locking the door 🚪 and people can't pray.

[@umarp5325]

Salam. I don't agree with the shaykh here. Islam you shouldn't only be following the letter of the law but also the spirit of the law. For the Israelites the sabbath was forbidden so they came out with a heela (trick) which didn't break the letter of the law but did break the spirit of the law. Coincidentally here you will find here the rate of rent charged similar to the going interest rate rather even higher. So eventually you will end up paying the same amount of money as a riba based loan.

[@ranjha4008]

Exactly, its like saying a sister should cover her hair. So what does she do? Wear a fashionable wig instead. Effectively her hair is covered

[@fishing-gardening-travelling]

My house on a mortgage is £840 but if I was to privately rent my house it would cost me £2000 a month. If I rented it, I would have to be on benefits as I don't earn enough to pay the rent, food, children's education plus other costs. Renting is more than double and will continue to go up but the mortgage will remain the same.