What is an Islamic mortgage in the UK?
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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.
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Reviewed by Kaiser Khan
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.
Primary source: gov.uk/buying-a-home
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