For Muslims in the UK seeking to buy property in accordance with Islamic principles, conventional interest-based mortgages are not an option. Fortunately, no interest mortgage alternatives are available through Sharia-compliant finance structures, allowing Muslim buyers and investors to enter the UK property market ethically and confidently.
Fraser Bond – a trusted London property advisor – offers expert support for those seeking halal, interest-free home finance solutions.
Under Islamic law (Sharia), charging or paying interest (riba) is strictly prohibited. As such, traditional mortgages offered by UK high street banks are not permissible for observant Muslims.
Instead, Islamic mortgage alternatives are structured as no interest property finance agreements, using approved models such as:
The bank purchases the property and leases it to the buyer. Monthly payments include rent and a gradual acquisition of ownership, with no interest involved.
The bank buys the property and sells it to the buyer at a disclosed profit. The buyer repays in instalments, without interest.
The buyer and bank jointly own the property. The buyer gradually purchases the bank’s share while paying rent on the remaining share. Eventually, full ownership is transferred.
Each of these models allows Muslims to finance property purchases in a fully halal, interest-free manner.
Several FCA-regulated banks and institutions offer Sharia-compliant, no interest mortgage products, including:
Al Rayan Bank
Gatehouse Bank
UBL UK
Ahli United Bank (UK)
These lenders assess applicants based on income, property type, and creditworthiness—just like conventional lenders—while structuring their offerings to be 100% riba-free.
At Fraser Bond, we maintain close relationships with halal mortgage providers and can help match clients to the right product based on their profile and location—particularly in London.
Fraser Bond is committed to providing Muslim clients with tailored support throughout the home buying process. Our services include:
Property sourcing across London that qualifies for Islamic finance
Lender matching with halal mortgage providers for interest-free finance
Application support and documentation preparation
Compliance assurance for Sharia adherence and FCA requirements
Investment advice for building halal property portfolios
Whether you're a first-time buyer in East London or a buy-to-let investor in Kensington, we’ll ensure your home finance journey respects your religious values.
If you're a Muslim buyer seeking an ethical, interest-free way to purchase property in the UK, Fraser Bond is here to help. We specialise in Sharia-compliant mortgages, offering expert support from start to finish.
Visit FraserBond.com or speak to our Islamic finance advisory team for a confidential consultation today.
