The Ijara mortgage is a popular Islamic financing structure in the UK, offering a halal alternative to interest-based home loans. For Muslim buyers and investors seeking to enter the London property market without compromising their faith, Fraser Bond provides expert guidance on Ijara and other Sharia-compliant finance options.
An Ijara mortgage is a lease-to-own model that complies with Islamic finance principles. Under this arrangement:
The Islamic bank purchases the property on behalf of the buyer.
The buyer enters into a leasing agreement with the bank.
Monthly payments are made to cover both rent and a gradual acquisition of ownership.
Once the finance term ends, ownership transfers to the buyer.
Unlike conventional mortgages, Ijara agreements do not involve interest (riba). Instead, the bank earns profit through rental payments and a separate purchase agreement, ensuring full compliance with Sharia law.
This model is ideal for:
Residential homebuyers
Landlords purchasing rental properties
Overseas buyers looking for compliant UK finance
The UK property market—particularly in London—offers strong growth and rental potential. Ijara financing offers distinct advantages for Muslim buyers:
Sharia compliance – Structured around ethical leasing, not interest
Full transparency – Fixed rental and purchase price agreements
Suitable for residential and buy-to-let properties
Regulatory assurance – Offered by FCA-authorised Islamic banks
Top Ijara mortgage providers in the UK include Al Rayan Bank, Gatehouse Bank, and UBL UK, offering lease-to-own options for both residential and investment purposes.
Fraser Bond works directly with these lenders to secure Ijara mortgage approvals and pair clients with eligible properties across key London boroughs including Canary Wharf, Westminster, and Camden.
At Fraser Bond, we understand the importance of ethical property finance. Our clients benefit from:
Access to Ijara-approved property listings in London
Brokerage services with FCA-regulated Islamic mortgage providers
Compliance support from application through to ownership transfer
Investment advisory for Sharia-compliant portfolios
Legal coordination to ensure all contracts uphold Islamic principles
Whether you're a first-time buyer or an investor expanding into London real estate, Fraser Bond ensures your property journey aligns with your values.
Ijara mortgages provide a secure, interest-free path to homeownership. Fraser Bond’s in-house team is here to help you navigate the UK property finance landscape with confidence and integrity.
Visit FraserBond.com or speak to our Islamic finance team today to begin your Sharia-compliant property journey.
