# What is an Islamic mortgage in the UK?

> Quick answer · Last updated 4 July 2026

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## In short

Not a conventional interest loan — a home purchase plan where you pay rent plus payments that gradually acquire ownership share of the property. FCA-regulated UK providers include several banks and specialist firms.

Common structures include ijara (lease) and diminishing musharaka (co-ownership). You pay monthly amounts that combine rent on the bank's share and capital acquisition — no interest is charged.

Total cost can differ from standard mortgages; compare the full price including fees. Deposit and affordability rules are similar to conventional lending.

See our Sharia-compliant savings guide for broader Islamic finance context.

## Related

- [Sharia savings guide](https://moneyguide.org.uk/savings/sharia-compliant-savings/)
- [Mortgages hub](https://moneyguide.org.uk/mortgages/)

## Primary source

gov.uk/buying-a-home

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.