An interesting feature here from the RICS on Sharia Banking in Europe, and more specifically, in the UK.

http://www.rics.org/Property/Investmentproperty/Growing market for Shariah property investments.html

(link now working!)

I think HSBC do Sharia mortgages - maybe HBOS as well.

When I was working at HBOS one of my team members suggested that HBOS should expand their Sharia services via the corporate suggestion box.

Whether it went anywhere I have no idea.

Joe

Looks like there is a lot of money to be made in that banking sector, based on the amount of inward investment from Mid-East investors. I'm just wondering how long it will be before we get a post on here about how this is 'increasing the islamification of our land'. :rolleyes:

That post will come....

The Sharia Mortgages are available to all, anyway. I think the only financial disadvantage is that Stamp Duty has to be paid twice.

Joe

Originally posted by JoeP
That post will come....

The Sharia Mortgages are available to all, anyway. I think they only financial disadvantage is that Stamp Duty has to be paid twice.

Joe

I'm pretty sure they will end up working a way around the stamp duty issue - Im sure nobody would want to pay it twice?

Originally posted by JoeP
I think HSBC do Sharia mortgages - maybe HBOS as well.

When I was working at HBOS one of my team members suggested that HBOS should expand their Sharia services via the corporate suggestion box.

Whether it went anywhere I have no idea.

Joe

HBOS dont as far as i'm aware, though it may of changed in the last few months since i left.

HSBC were on about doing them so i presume they now have. I think Lloyds might be the only other major uk bank...not sure.

Not heard of the double stamp duty before. If i'm correct what happens is the the customer and the bank have an agreement where the bank buys the house and the customer rents it off them until the bank has received all their monies back including the original purchase price and the bank's fee's or interest to everyone else! Something along those lines...

Maybe someone will correct me?

Of course, people should be free to do what they like with their own money, but I can't help thinking that there is something almost absurd about an entire sub economy being based on the interpretation of an edict against usury in a work written in 8th century Arabia.

As for 'Sharia mortgages', I have not studied their characteristics in detail, but I'll wager that HSBC would not be interested in them unless there was a profit in for them somewhere - whether its called interest, an emolument, a gift or something else. Ingenious 'get around' solutions are of course quite common in all religions, but particularly in Islam because the Koran is meant to be interpreted literally.

I can't help thinking also that the ban on usury, among
many other things, has contributed to the stagnation of Muslim economies around the world. The edict against usury is but one of many such strictures in the Koran. I have been watching the Islam channel on cable TV recently and have been surprised (altohugh not pleasantly so) by the bewildering range and complexity of the rules Muslims are expected to observe in their daily lives.

For example, on the Question and Answers section, a young boy rang up to ask if it was OK to play snakes and ladders. No was the reply, because it could lead to gambling. Another questioner rang to find out if it was OK to use vinegar. Unwise came the reply, because it contains wine. Is it OK to listen to music? No, except if it is played with a certain drum as mentioned in the Koran - well, that lets me out. Any religion which has no place for Mozart or Beethoven has no place for me either.

Originally posted by JoeP
The Sharia Mortgages are available to all, anyway. I think the only financial disadvantage is that Stamp Duty has to be paid twice.

No, the double stamp duty on Islamic mortgages was abolished in April 2003. However, the fact that they're perceived as riskier means that the financing cost (effectively, the interest rate) is larger.

This, and the reasons for the erstwhile double stamp duty, are explained in the following Council of Mortgage Lenders web page ...

http://www.cml.org.uk/servlet/dycon/zt-cml/cml/live/en/cml/press_releases_2003_0409

See also:

http://www.bbc.co.uk/religion/religions/islam/features/banking/

Originally posted by RobT
HBOS dont as far as i'm aware, though it may of changed in the last few months since i left.



You left too?

Originally posted by LordChaverly
Of course, people should be free to do what they like with their own money, but I can't help thinking that there is something almost absurd about an entire sub economy being based on the interpretation of an edict against usury in a work written in 8th century Arabia.

As for 'Sharia mortgages', I have not studied their characteristics in detail, but I'll wager that HSBC would not be interested in them unless there was a profit in for them somewhere - whether its called interest, an emolument, a gift or something else. Ingenious 'get around' solutions are of course quite common in all religions, but particularly in Islam because the Koran is meant to be interpreted literally.

I can't help thinking also that the ban on usury, among
many other things, has contributed to the stagnation of Muslim economies around the world. The edict against usury is but one of many such strictures in the Koran. I have been watching the Islam channel on cable TV recently and have been surprised (altohugh not pleasantly so) by the bewildering range and complexity of the rules Muslims are expected to observe in their daily lives.

For example, on the Question and Answers section, a young boy rang up to ask if it was OK to play snakes and ladders. No was the reply, because it could lead to gambling. Another questioner rang to find out if it was OK to use vinegar. Unwise came the reply, because it contains wine. Is it OK to listen to music? No, except if it is played with a certain drum as mentioned in the Koran - well, that lets me out. Any religion which has no place for Mozart or Beethoven has no place for me either.

Quite. It seems silly that by calling the interest on the mortgage as "rent" and by holding the property in the bank's name, it somehow makes it different. In reality it's essentially an interest only mortgage with the capital paid off at the end. It's a gimmick to attract Muslim customers who live their lives according to a book written thousands and thousands of years ago.

Originally posted by bonny
You left too?

Yep, i left HBOS or Halifax back in April, i take it you do or used to work there? Don't know you do i?!?