For UK-based Muslim homebuyers, securing a mortgage that aligns with Islamic principles is a top priority. Conventional interest-based loans are considered haram (forbidden) due to the presence of Riba (interest). Fortunately, the UK now offers regulated and accessible Sharia home finance options, allowing buyers to own property ethically and legally.
At Fraser Bond, we provide tailored advice for clients navigating Sharia home finance in the UK, ensuring every step—from property selection to funding approval—is fully aligned with faith-based and regulatory requirements.
Sharia-compliant home finance is a form of property lending that avoids interest and speculation. Instead of charging interest on a loan, the bank and buyer use asset-based contracts that generate profit in a compliant way.
No Riba (interest)
Real ownership of assets
Shared risk and transparency
Fixed pricing models
Certified by Islamic Sharia boards
FCA-regulated in the UK
Buyer and bank jointly purchase the property
Buyer leases the bank’s share while gradually buying it out
Ownership fully transfers once final instalment is paid
Most popular structure among UK Islamic banks
Bank owns the property and leases it to the buyer
Buyer pays fixed rent over time
Property transfers to buyer after agreed lease term
Bank buys the home and sells it to the buyer at a fixed profit
Buyer pays the total in agreed instalments
Commonly used for development or short-term purchases
Several banks and finance institutions currently offer Sharia home finance to UK residents:
Offers Home Purchase Plans using Diminishing Musharaka
Accepts UK residents, expats, and international buyers
Discounts for energy-efficient (green) properties
Serves Greater London and across England & Wales
Long-established Islamic retail bank
Offers both residential and Buy-to-Let HPPs
Popular with professionals, families, and landlords
Offer Murabaha-based Islamic finance
Access via approved brokers (Fraser Bond partners included)
Suitable for high-net-worth and investment buyers
To qualify for Sharia-compliant finance in the UK, you typically need:
UK residency or valid visa (some expats accepted)
Deposit of 20% or more
Clean credit history
Proven income (salaried, self-employed, or rental)
Property in England or Wales (some exceptions for Scotland)
Fraser Bond assists clients with full prequalification, application review, and property eligibility checks.
Whether you’re buying your first home or investing in Buy-to-Let property, Fraser Bond offers full-service guidance on:
Choosing the right Sharia finance structure
Matching clients with FCA-approved Islamic lenders
Identifying eligible properties for Halal financing
Managing legal documentation, contract reviews, and compliance
Supporting buyers across key London boroughs like Tower Hamlets, Brent, Ealing, and Kensington
Our team specialises in helping clients navigate the UK property market without compromising their values.
Sharia home finance in the UK is more accessible than ever. With the right support, you can purchase property ethically and securely. Fraser Bond will help you every step of the way.
Visit FraserBond.com to speak with a Halal mortgage advisor and start your property journey today.
