Shariah-compliant finance for your property journey.

A partnership-based structure commonly associated with Islamic home purchase plans in the UK. The customer and provider hold shares in the property, and over time the customer progressively acquires more of the provider's share while making payments for use of the portion they do not yet own. As the customer's ownership increases, their payments reflect the reducing share still held by the provider. The arrangement continues until the customer holds full ownership.

A leasing-based structure in which a provider may acquire an interest in the property and the customer makes payments that can include an element reflecting use of the provider's share, depending on the particular arrangement. The structure and terms vary between providers. In some arrangements this is combined with a reducing-partnership element over time.

A purchase-and-resale arrangement in which an asset is acquired and then sold to the customer at an agreed higher price, with payment made according to the agreed structure. The profit element replaces the interest charge in a conventional loan. Availability for UK home finance depends on the provider and their current product offering.

A broader partnership structure in which two or more parties contribute capital and share ownership according to an agreed arrangement. Both the customer and the finance provider hold an ownership interest in the property, with the structure of rights and contributions set out in the agreement. Diminishing Musharaka (above) is a specific application of this principle commonly used in home finance.

"Islamic mortgage" is a term commonly used by consumers to describe a Shariah-compliant home-finance arrangement. Unlike a conventional mortgage, these products are structured to avoid charging or paying interest, which is not permitted under Shariah principles. The underlying arrangement may involve ownership, purchase and resale, leasing or partnership structures depending on the provider and product.

Shariah-compliant home-finance products can be structured in several ways — the most common in the UK are Diminishing Musharaka (a reducing partnership), Ijara (a leasing arrangement) and Murabaha (a purchase-and-resale transaction). Each approach handles the property acquisition differently but shares the principle of avoiding conventional interest. Specific details vary between providers and products.

A conventional mortgage involves borrowing a sum of money and repaying it with interest over the mortgage term. Shariah-compliant home finance uses structures that may involve the provider acquiring an ownership interest in the property, leasing arrangements or profit-based transactions, rather than a loan on which interest accrues. The practical outcome — helping someone acquire a property — is similar, but the legal and financial structure differs materially.

Diminishing Musharaka is a reducing-partnership arrangement in which the customer and finance provider hold shares in the property. Over time, the customer progressively acquires more of the provider's share while making payments for use of the portion they do not yet own. The customer's ownership proportion grows until they hold the property outright. This is the structure most commonly used for Islamic home purchase plans in the UK.

Ijara is a leasing-based structure. A provider may acquire an interest in the property and the customer makes payments that can include an element for use of the provider's share, depending on the particular arrangement. Terms and structures vary between providers, and in some products Ijara is combined with a reducing-partnership element.

Murabaha is a purchase-and-resale arrangement. An asset is acquired and then sold to the customer at an agreed higher price, with payment made according to the agreed structure. The profit element on the resale replaces the interest charge in a conventional loan. Availability for UK home finance depends on the provider and their current product range.

Yes. A number of specialist providers offer Shariah-compliant home-finance products for UK residential property purchases. Eligibility depends on the provider's own criteria, your financial position and the property. We can help you understand what may be available and appropriate for your circumstances.

Shariah-compliant buy-to-let and property-investment finance may be available through certain providers, depending on the property, your circumstances and the provider's current product range. We can discuss what may be suitable for your situation.

Most Shariah-compliant home-finance products require a deposit, as with conventional mortgage products. The minimum deposit required varies by provider and product. We can help clarify what applies to your particular circumstances.

Yes. We help clients exploring Shariah-compliant property-finance options understand the available structures, navigate eligibility and affordability requirements and progress the finance journey where we are able to assist. We do not determine whether any product meets your personal religious requirements — that is a matter for you and appropriately qualified religious guidance.