Muslim Borrowers Can Use State Backed Sharia Law Compliant Mortgages

It's good news for Muslim house buyers as thanks to George Osborne's 'Help to Buy Scheme' ministers have launched a version which is compliant with Sharia Law.

Previously unable to participate in the scheme, Muslim borrowers can now take advantage of the multi-billion pound scheme which enables buyers to put down just five percent deposit.

With thousands of buyers already using this scheme to purchase their first home, The Islamic Bank of Britain looks set to be the first lender to offer mortgages under the new Help to Buy rules.

According to Sharia Law, which is Islam's legal system and governs every area of Muslim life, the taking of a loan is forbidden as is the paying of interest.

In an interview with the Daily Mail, Treasury Minister Sajid Javid is delighted with the changes to the scheme to include Sharia Law compliant Home Purchase Plans.  He explains that the scheme will give even more choice to hardworking families across the UK who are 'trying to fulfil their home owning aspirations'.

Islamic banks can now offer the Home Purchase Plans to Muslim buyers as the ownership of the property will be split between the customer and the bank.

The new homeowner will in effect pay for a proportion of the house outright with their deposit, then pay regular instalments to the bank to cover rent on the portion not yet owned plus what is known as an 'acquisition payment'.

The scheme allows Muslim buyers to buy the property from the bank gradually and become the eventual owners without contravening Sharia Laws.

Call 0845 603 0708 or email our property conveyancing solicitors via answers@nationalsolicitors.com  to discuss confidential matters regarding your finances when buying or selling a property.

Bolton Conveyancing Solicitors