For Muslim buyers in the UK, purchasing a home while adhering to Sharia law requires an alternative to conventional interest-based mortgages. Fortunately, Islamic mortgages, or Halal home purchase plans, offer a Sharia-compliant path to homeownership, now widely available across the UK real estate market—including London.
At Fraser Bond, we assist buyers and investors in navigating the property purchasing process through Islamic mortgage solutions, ensuring legal compliance, affordability, and ethical alignment throughout the transaction.
An Islamic mortgage is a non-interest-based financing arrangement that allows a buyer to purchase a property in a way that complies with Islamic financial principles, which prohibit Riba (interest).
Rather than charging interest, Islamic banks or providers use one of three common structures:
The bank purchases the property and leases it to you.
You pay monthly instalments (rent + capital contribution).
Ownership transfers to you gradually or at the end of the lease term.
The bank buys the property and immediately sells it to you at a marked-up price.
You repay the bank in instalments over a fixed term.
There’s no interest—just a known profit margin.
You and the bank co-own the property.
You buy the bank’s share over time while paying rent on their portion.
As your equity increases, the rent decreases until full ownership transfers.
All structures are regulated by the Financial Conduct Authority (FCA) and must also comply with Sharia boards.
UK residency or visa status
Minimum deposit (usually 20–30%)
Proof of income or business status
Credit history (ethical providers still assess affordability)
Reputable UK Islamic mortgage providers include:
Al Rayan Bank
Gatehouse Bank
Islamic Bank of Britain
Others offering Halal finance via intermediaries
Fraser Bond can recommend the most suitable lenders based on your profile and property type.
Similar to traditional mortgages, the provider will give a DIP to indicate how much you can afford to borrow.
Work with a trusted estate agent (like Fraser Bond) to identify eligible properties, ensuring the purchase structure aligns with the chosen Islamic finance model.
Submit a full application, including:
Identification and income proof
Bank statements
Deposit source confirmation
Solicitor details
The provider's solicitor will purchase the property.
A legal agreement (lease or partnership) will be created.
You complete the transaction and begin making monthly payments.
Fully compliant with Islamic principles
Transparent, fixed-rate repayment structures
FCA-regulated and widely accepted in UK property market
Suitable for residential and some buy-to-let scenarios
Accessible to British citizens, foreign nationals, and expats
At Fraser Bond, we help Sharia-conscious clients through every step of the homebuying process, including:
Identifying suitable properties for Islamic finance
Coordinating with Halal mortgage providers and solicitors
Providing investment advice for ethical property portfolios
Supporting compliance, affordability, and negotiation in London’s competitive market
Whether you're a first-time buyer or seasoned investor, our team ensures your purchase aligns with your faith, financial goals, and legal obligations.
Visit FraserBond.com to book a consultation or start your Halal home buying journey today.
