Halal Options | Islamic, Mortgage Alternatives

Shariah-compliant (Islamic) alternatives to mortgages for home and other property finance needs in the UK. For anyone who needs to avoid interest.

[halaloptions]

Surah Ar-Rum 30:39

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 30:39

[halaloptions]

Surah An Nisa 4:161

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 4:161

[halaloptions]

Surah Aale-Imran 3:130

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 3:130

[halaloptions]

Surah Al-Baqarah 2:279

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 2:279

[halaloptions]

Surah Al-Baqarah 2:278

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 2:278

[halaloptions]

Surah Al-Baqarah 2:276

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 2:276

[halaloptions]

Surah Al-Baqarah 2:275

Tafseer (Mufti Taqi Uthmani): Ma'ariful Qur'an 2:275

[halaloptions]

✅ DLA payments for dependants as income

If you are receiving Disability Living Allowance for a dependent and you were previously told it can not be included in your income calculation, resulting in a failed affordability assessment, this has now changed!

We can now include the allowance as income, provided that the allowance is for the benefit of the applicant's dependent and not anybody else.

We feel this is a more common sense approach because affordability assessments include the expense of providing for the dependants, so why not allow all the income received on their behalf? And when the dependant is old enough that the parent no longer receives the benefit, the same child will no longer be a dependant for affordability purposes either 🤷🏻‍♂️

Note: This has always been an allowable practice when the benefit is for the actual applicant. It was only a problem when the benefit was for children.

In line with our ongoing commitment, we will persistently advocate for the enhancement of criteria and simplification of processes to facilitate Muslims in securing property financing in accordance with Islamic principles.

[halaloptions]

We have become Generation Riba. We like this new ad from Wahed Invest.

[halaloptions]

Question:

After much thought, I have decided to leave interest-based finance. What should I do now? What happens to the mortgage and the property?

Answer:

Allah says: “And those who, when they do an evil thing or wrong themselves, remember Allah and implore forgiveness for their sins—Who forgives sins save Allah only?—and will not knowingly repeat (the wrong) they did.” (Quran 3:135)

The Prophet (Allah bless him and give him peace) said in a rigorously authenticated (sahih) hadith: “There is no one who commits a sin, goes and performs ritual ablutions, and then prays two rakats after which they seek Allah’s forgiveness except that He forgives them.” (Tirmidhi)

Imam Nawawi says in Riyad al-Salihin: “Sincere repentance consists of abstaining from the sin instantly, having a firm intention not to be involved in that sin again and being remorseful and regretful of one’s actions.”

One takes the means to extricate oneself from the mortgage: one would be religiously obligated to remove oneself from the situation, and when not reasonably possible, to repay the loan as quickly as possible by the most effective means available to one; most readily by reducing one’s expenditure and, if possible, taking interest-free loans from friends and family. Ownership in the house itself and proceeds from its eventual sale are both considered lawful.

A number of Islamic banks now offer refinancing options that convert one’s conventional mortgage into its Shariah-compliant equivalent. Get in touch with Halal Options to learn more.

[halaloptions]

RUNNING A HOME BUSINESS FROM A HOUSE WITH A HOME PURCHASE PLAN

Commercial activities within the property that do not affect the re-sale of the property as a residential property are now allowed with at least one provider. Previously, the finance companies only allowed office/study to be the only legitimate commercial use.

Now, other types of home-based businesses like hairdressing, beauty therapy, cupping, etc. would also be allowed. However, insurance must be available on current terms, allowing for business use.

Let us know when applying if you plan to run any home based business.

[halaloptions]

"O you who have believed, fear Allah and give up what remains of interest, if you should be believers. And if you do not, then be informed of a war (against you) from Allah and His Messenger."

Some lessons from study of the verse published here: https://versebyversequranstudycircle.wordpress.com/2017/03/05/riba-constitutes-war-against-allah-and-the-messenger/

This ayah reminds us to leave Riba. Sometimes, we believe that since we are already in this transaction, we will give up when this loan ends.

Allah does not say: O You who is already in a Riba transaction, give up after five or ten years. We must pay heed to this warning because the next ayah is terrifying.

Can we visualize this happening on the Day of Judgment? Do we have the courage to take arms against Allah and the Messenger ﷺ? And yet, we believe that our situation is unique. We have to buy a house. We have to take a loan on Riba. Do we think that Allah doesn’t know our state? He knows our situation, He placed us in this situation.

This is a post from the Halal Options WhatsApp Channel. Follow the link to follow us.

[halaloptions]

Follow the Halal Options channel on WhatsApp: https://whatsapp.com/channel/0029VaLuEqOFCCoLXCeOpf0S

Halal Options

WhatsApp Channel Invite

[halaloptions]

I'm looking for a buy to let mortgage. The house value is between 75-90k and I have a deposit 25k. Is this something you can give a mortgage for?

At the time of writing, the minimum property value for a halal BTL Purchase Plan (we don't do mortgages) is £94,000. We can not assist on a property price/value less than this.

[halaloptions]

As Salaam Mualaikum, just wanted to ask have you any knowledge on a company called stride up? Would you recommend Jazak allahu khairan

Wa alaikum salaam.

Yes. We are a key partner of StrideUp, and every now and again, we had exclusive rates with them, too. We like StrideUp, but all customer needs are different, and we will advise on what we feel is best for you. Please book an appointment with us to discuss your specific needs.

[halaloptions]

Is there anyone other than Al-Rayan and Gatehouse the provide HPP in UK?

Yes. In fact, Al Rayan Bank no longer offers Home Purchase Plans in the UK, but we have a few other alternative options. Book an appointment with one of our advisors to discuss your needs.

[halaloptions]

Are you a HPP broker?

Yes. We are an FCA authorised broker specialising in advising on and arranging mortgage alternative Home Purchase Plans that are shariah-compliant.