Month: April 2023

There are a number of mortgage products available on the market, so when you’re looking to buy a property, it can sometimes be hard to work out which one will best suit your circumstances. Finding out the differences and advantages of a range of mortgage options is always a good idea, so the two we’re going to look at today are Islamic mortgages and conventional mortgages.

The mortgage rate refers to the amount of interest you’re charged on the loan you took out against your property. The amount you pay will depend on many factors, including the length of your mortgage term, your deposit amount and whether you have a fixed or variable mortgage. In this article, we’re going to take a closer look at what mortgage interest rates are and answer the frequently asked question, ‘how are interest rates calculated?’.

Islam forbids interest-bearing loans, which means that traditional mortgage products in the UK are usually forbidden under Sharia law. If you’re looking for an Islamic mortgage or a home loan that’s compliant with your beliefs, you can look for a specialist type of mortgage that some banks offer which involves paying rent instead of interest. In this article, we explore what an Islamic mortgage is and where to get an Islamic mortgage in the UK.