Until recently, mortgages were a religious obstacle to any muslim who wanted to buy a home. These home loans do comply with the sharia, said the islamic scholar, dr zaki badawi of the muslim college in ealing, west london. The mortgage is the latest in a range of new products designed to comply with riba, whereby the payment and receipt of interest is forbidden.

This is a situation that does not exist under an interest mortgage, where the bank never actually owns the property. Cml: mortgage lending at all- time record. The mortgage explorer is a trading name of the financial explorer southern ltd. The latter then makes monthly payments over a set term, like a traditional mortgage. Bbc news - high street bank offers islamic mortgage. Mayfair consulting limited is an appointed representative of the mortgage times group which is authorized and regulated by the financial services authority fsa.

To what extent do the new islamic mortgages comply with sharia law?Cheaper mortgages. If this all this sounds similar to conventional mortgages, that's because it is. They have got the resources for a conventional mortgage, but they would not do that because it does not comply with their religious beliefs. Payment in lieu. These are those of britain's two and a half million muslims who avoid property purchase because islamic law - sharia - forbids them from paying interest.

Islamic mortgages an example of how they compare. Either you break the law, or you do not get a mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage. Independent mortgage advice. They aim to operate for the benefit of the communities they serve, and as such offer a wide range of mortgages to suit all budgets and properties. Noaman hasan, the uk head of hsbc amanah finance, says that options other than conventional mortgages were just the start. Lloyds tsb started offering sharia products at five branches last year and now offers them through many more, with even more to follow.

In a conventional mortgage, the customer is the borrower. Hsbc will become the first high street bank in the uk to launch an islamic mortgage. The bank pays off your interest- based mortgage. Poll reveals 40% of muslims want sharia law in uk. Under sharia law, it is forbidden to pay or receive interest, and making products compliant is very expensive. Analysis the mortgage maze environmental risk endowment shortfalls q&a: rising prices.

Lloyds tsb is the first bank to offer sharia- compliant products through all its branches. One of the products we would really like to offer is a sharia- compliant credit card, � williams says. Mayfair consulting limited is a halal mortgage broker. This is where islamic mortgages comes into play. Sharia is a now a familiar term to muslims and non- muslims. Morgage life insurance. Replacing a conventional mortgage with a sharia- compliant one. Apr remortgage - rate for comparison is 5. 50.

Islamic mortgages are only for the wealthy. Bristol & west, west bromwich building society, lloyds tsb, bank of ireland and hsbc have all launched islamic sharia mortgage offerings. Modes of finance glossary sharia'a compliance.

Many people, including muslims, misunderstand sharia. All aspects of a muslim's life are governed by sharia. Hsbc hbc plans to launch an islamic mortgage product and other high- street banks could now follow suit with mortgages and other financial services products. Until july 2002 only one financial institution in the uk offered islamic mortgages the united bank of kuwait. It is even possible that these developments could stimulate a new wave of interest in sharia- compliant financial services products. At the same time, all of the solutions to the property problem involve the bank making its normal return on a mortgage- type investment.