Islamic (Halal) Mortgage
“What is an Islamic mortgage?” you may wonder. — this is a common question. The short response is that what some people refer to as an Islamic mortgage isn’t a loan at all. In some ways, Islamic home finance resembles a mortgage, but it is built on a completely different basis. It is a halal (or permissible) way for faith-conscious Muslims and non-Muslims to buy a home because Islamic home financing is free of riba (loosely translated as interest).
How Can Ask Financial Service Help You?
Islamic finance is a global economy that uses the traditional financial system to operate. Islamic finance has expanded at a rapid pace around the world over the years. We set out to clarify the three benefits of Islamic finance.
- Accelerating economic development:
Profit and development are unquestionably the objectives of Islamic finance companies. As a result, they choose companies to invest in based on their potential for growth and success.
To attract more funds from its depositors, each bank in the Islamic banking industry will invest in promising business projects and attempt to outperform its competitors. This will result in a strong return on investment for both the bank and the depositors in the long run. This is impossible in a traditional bank, where depositors receive pre-determined interest rates on their deposits.
- Encouraging stability in investments:
Compared to conventional finance, investments in Islamic finance are approached with a slower, more deliberate decision-making mechanism. Companies with too risky financial activities and operations are typically excluded from Islamic financing. Islamic finance encourages risk mitigation and creates room for more excellent investment stability by conducting extensive audits and evaluations.
- Reducing the impact of harmful products and practices:
Shariah principles prohibit any transactions that benefit industries or practices prohibited in Islam, such as usury, speculation, or gambling, regardless of whether they are legal in the transaction’s place.
How Can “Ask Financial Services” Help You?
Our specialist Islamic mortgage advisors (halal mortgage brokers) are highly experienced in advising on Islamic mortgages and finance because we appreciate the value of faith. Because it is against Sharia Law to pay or accept interest, it has traditionally been difficult for British Muslims to buy or remortgage homes. Therefore, experienced solicitors with Halal mortgage specialist knowledge of Islamic mortgages and finance and good relationships with the organizations that provide these services are needed for the procedure.