The new Islam megathread

[1Man&hisBMW 10]

Originally posted by sham71

can I have a muslim mortgage AND wear a long sleeve top for PE?

 

You will only end up having this thread closed! Please don't!

[nick2 10]

Whats being muslim got to do with it ?

 

Edit - I've read the article, I didn't know it was against their religion, you learn something every day.

[bellis 10]

Originally posted by sham71

can I have a muslim mortgage AND wear a long sleeve top for PE?

 

only if you can prove you live in pitsmoor:D

[1Man&hisBMW 10]

Originally posted by nick2

Whats being muslim got to do with it ?

 

 

To do with the interest feature...

 

In this case the bank buys the house, and you 'rent' it from them so to speak. But you dont get hit with interest rate rises even though the 'rent' is actually your monthly payment...

 

still looking into it myself.

[nick2 10]

I don't think the banks will insist on you being muslim, that will limit their profits from the new scheme.

[sham71 10]

In Islam, Usury (lending of money for profit) is not allowed.

 

Hence, traditional mortgages are not allowed. Not sure how the muslim mortgage gets round this.

[coopster1974 11]

I think you'll find HSBC are doing this now. From what I can remember from the internal blurb we get its mainly run from branches in predominantly muslim areas. I'm sure a call on 08457 404404 would help point you in the right direction.

[1Man&hisBMW 10]

essentially its like a long term fixed rate. I suppose its okay for those not wanting to take risk or pay 'interest'.

 

still another interesting method of financing.

[HotPhil 10]

From what I remember, HSBC were indeed having a big push to be first-to-market with their product. Not sure it's definitely been launched yet. As mentioned, the idea is that it complies with the Islamic rule of not being part of an agreement of lending money for profit.

At the end of the day though, they will be intending to make money I guess, just in compliance with the letter of Islamic rules. I'm no expert on Islam, but perhaps it could be said that it doesn't comply with the spirit of the rules, like I say, not sure really.

[Cyclone 10]

mr Brown would like to remove some of the interest uncertainty from the housing market by encouraging more long term fixed rate products, the ideas been around for a while.

[Mo 10]

Didn't think muslims had mortgages. I'm reliably informed that they often pay cash when buying properties. My cousin sold a house in Darnall and the muslim purchasers paid cash for it.

[Tony 10]

I'm fascinated how it gets around the usury aspect because I really don't understand it. From memory, UBK started playing around with the idea a few years ago when they started investing in some residential portfolios for Middle Eastern consortium clients.