Paying interest (riba) is strictly prohibited in Islam. For Muslim homebuyers and investors in the UK, this presents a challenge when navigating the conventional mortgage market. Fortunately, there are Sharia-compliant alternatives that enable property ownership without paying interest, through ethical financial structures approved by Islamic scholars.
Fraser Bond, a leading London property consultancy, specialises in halal mortgage solutions designed to help Muslim clients avoid riba and achieve their home ownership or investment goals ethically.
In Islamic finance, riba refers to unjust, exploitative gains made through interest-bearing transactions. The Quran and Hadith strongly condemn interest in all forms, as it creates economic imbalance and injustice.
This is why Muslim homebuyers must avoid traditional mortgages, which are structured around interest payments to the lender. Instead, buyers must seek financing that complies with Islamic principles, ensuring no interest is charged or received at any stage of the transaction.
Islamic home finance uses asset-backed, transparent structures instead of debt-based interest systems. The three most common halal mortgage models in the UK are:
The Islamic bank purchases the property.
You pay rent and gradually acquire ownership.
No interest is charged – payments are structured as rent.
The bank buys the property and sells it to you at a known profit.
You repay in instalments, with no interest element involved.
Works well for buyers with high deposits or one-off payments.
You co-own the property with the bank.
You pay rent on the bank’s share and gradually buy it out.
Eventually, you own 100% of the property.
All of these structures are riba-free and certified by Islamic finance scholars, making them valid alternatives for Muslims seeking to buy property without compromising their faith.
Fraser Bond offers comprehensive support to help Muslim buyers and investors access the UK property market through halal channels. Our services include:
Matching you with Islamic banks such as Al Rayan Bank, Gatehouse Bank, and UBL UK
Pre-qualifying you for halal finance based on your income, deposit, and goals
Advising on suitable property types that comply with Sharia rules
Managing the end-to-end process including solicitors, valuations, and compliance
Supporting overseas clients buying UK property without interest
Whether you’re buying your first home or investing in London real estate, we ensure your financing avoids riba entirely.
Avoiding interest doesn’t mean giving up on home ownership. With Islamic mortgage solutions, you can buy, invest, or develop property in the UK in a way that’s fully aligned with your values. Fraser Bond is here to guide you through every step.
Visit FraserBond.com or speak to our Islamic finance advisory team today to explore riba-free property finance options.
