For Muslim home buyers in the UK, choosing a mortgage that aligns with Islamic finance principles is essential. As conventional interest-based loans are prohibited under Sharia law, many buyers seek out Halal mortgage options—also known as Islamic home purchase plans—to access the property ladder while remaining true to their faith.
At Fraser Bond, we guide UK buyers through the process of finding and securing the best Halal mortgage options tailored to their budget, location, and long-term financial goals—especially in London’s competitive housing market.
Halal mortgages differ from conventional loans in that they do not charge interest (Riba). Instead, Islamic mortgage providers use alternative financial structures based on ownership, leasing, or profit-sharing models that comply with Sharia law.
The most common types of Islamic home finance in the UK include:
The buyer and bank co-own the property.
You pay monthly rent on the bank’s share while gradually buying it out.
Ownership increases over time until it fully transfers to you.
The bank purchases the property and leases it to you.
You make monthly payments consisting of rent + acquisition payments.
You acquire full ownership at the end of the term.
The bank buys the property and sells it to you at an agreed profit margin.
You pay the total fixed price over a set period, with no interest involved.
All models are overseen by a Sharia board and regulated by the Financial Conduct Authority (FCA).
Here are the top-performing and most accessible Islamic mortgage lenders in the UK market today:
One of the UK’s leading fully Sharia-compliant banks
Offers Diminishing Musharaka & Buy-to-Let options
Strong nationwide presence, including London
FCA regulated, with competitive rates and transparent fees
Ideal for: First-time buyers, remortgages, high-net-worth clients
Specialist in Sharia-compliant home finance and savings
Offers Home Purchase Plans (HPPs) across residential and BTL markets
Focused on professional expats and prime locations like London & Birmingham
Accepts income from self-employment and rental sources
Ideal for: Self-employed buyers, expats, portfolio investors
Offers Sharia-compliant home finance options with fixed-term plans
Popular among South Asian communities
Provides HPPs for both residential and BTL purchases
Ideal for: Mid-value home buyers and those seeking competitive fixed terms
Offers Islamic mortgages through approved UK brokers
Suitable for high-value property purchases
Requires larger deposits and thorough vetting
Ideal for: High-net-worth individuals, investors
When evaluating Halal mortgage options, consider:
Deposit size – Most providers require 20–30% minimum
Term flexibility – Early payment terms vary
Rental rate or profit margin – Equivalent to conventional interest rates but structured differently
Location eligibility – Some providers only cover selected UK postcodes
Property type – Flats, leaseholds, and new builds may have unique terms
At Fraser Bond, we work with ethical lenders and experienced Islamic finance brokers to match each client with the right Halal mortgage structure and provider based on their affordability, property type, and long-term goals.
We offer end-to-end support for Muslim buyers looking to purchase property using Sharia-compliant finance, including:
Identifying eligible properties for Islamic mortgages
Connecting with trusted FCA-regulated Halal mortgage providers
Assisting with DIPs, legal processes, and affordability checks
Advising on London property market conditions, pricing, and negotiation
Supporting buy-to-let, first-time buyer, and relocation scenarios
Visit FraserBond.com to schedule a consultation and begin your Halal home buying journey with expert guidance.
