IslamicFinance.de

Specialist Sharia Islamic mortgages are available with certain lenders but take-up is currently low. According to Lilla Dilliway, mortgage and protection adviser at BlueWing Financials, the low demand is because applicable borrowers are unaware that a Sharia-compliant mortgage is a possibility, especially in the UK. When compared, a Sharia mortgage’s part rent, part capital repayment aspect means that borrowers may find it difficult to meet the affordability criteria and/or have eligibility issues based on their credit history. Sharia-compliant mortgages are often also more expensive due to the higher administration costs of the lender. Dilliway suggests that if Sharia-compliant mortgages were advertised and promoted in the same way as mainstream mortgages, an increase in take-up might be seen.