Boom in Muslim mortgage approvals
Muslim mortgage business is set to boom, according to Shariah compliant financial services provider alburaq, which has approved mortgages worth over £100 million in last six months.
Shariah law prohibits the practice of earning money from money, so the payment of interest (known as Riba) is not allowed. Shariah compliant finance products operate without earning – or charging – interest, enabling Muslims to bank without compromising their principles
Alburaq, which launched home and buy-to-let finance for the UK’s two million Muslims towards the end of 2004, believes the total Muslim mortgage market grow to over £1 billion by 2009.
”We are now seeing the UK market developing very quickly. It is also noticeable that the nature of our enquiries is changing and less explanation is now required about how these products work and the focus is now more about how much is the cost.’, said Keith Leach, Head of alburaq at ABC International Bank plc. ‘At the moment the volume of Islamic mortgage business is only a small percentage of the total mortgage figure in the UK, but based on our current trends we are predicting significant growth over the next 2 years.”