Updated October 2026 · Fraser Bond
Finance · Islamic
Sharia-compliant home finance
Ijaralease-to-own
Musharakashared ownership
Murabahacost-plus
SDLTno double charge
In short: Islamic home finance lets buyers purchase a home without paying interest. The most common UK structures are Ijara (the provider buys the home and leases it to you), Diminishing Musharaka (you and the provider co-own the home and you buy out its share over time), and Murabaha (the provider buys and sells to you at a higher agreed price, paid in instalments). Special stamp duty rules prevent a double charge on these structures. Providers come and go, so check who currently offers home purchase plans and compare total costs. Fraser Bond can help you find a home and prepare for the purchase.
| Structure | How it works |
|---|---|
| Ijara | Provider owns; you pay rent plus capital towards ownership |
| Diminishing Musharaka | Joint ownership; you buy the provider's share gradually |
| Murabaha | Provider sells to you at a marked-up price in instalments |
Common Islamic finance structures
Frequently asked questions
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Is Islamic home finance more expensive?
It can be, so compare total costs.
Is there stamp duty twice?
No, special rules prevent a double charge.
Can Fraser Bond recommend a provider?
We can introduce brokers; always compare current providers.
