Halal Mortgages

halal mortgagesAre you looking to instruct a solicitor experienced in dealing with Halal Mortgages?

CORONAVIRUS / COVID-19: We are continuing to provide a full service. We offer remote meetings by telephone or video conferencing software such as Zoom, Skype and Facetime if required.

It is forbidden under Sharia Law to pay or receive interest. For this reason, it has typically been difficult for British Muslims to purchase or re-mortgage property. In 2002, the UK government made Sharia compliant mortgages available in the UK, leading many large banks to begin offering this new form of finance.

If you are interested in purchasing or re-mortgaging a property through Sharia compliant finance, it is important to find a solicitor with an in-depth knowledge of these products. Halal Mortgages are a niche and complex area of property law and require the input of a solicitor experienced in working with Sharia compliant institutions and products.

Our Halal Mortgages conveyancing expert, Shakeel Mir, regularly advises on the products offered by the major Islamic Banks.  He has developed relationships with key personnel at these banks who are able to assist individuals with obtaining finance for their purchase in an ethical way by using the well-established Islamic finance methods such as the Diminishing Musharaka (Partnership) and Ijarah (Lease).

Shakeel has in excess of 25 years’ of conveyancing experience and is an expert in dealing with Sharia compliant property transactions.  He represents clients in Buckinghamshire, Hertfordshire, Bedfordshire and all across the UK.

If you would like to discuss your circumstances or requirements with our Halal Mortgages conveyancing expert please call us on 0800 086 2929, email info@elitelawsolicitors.co.uk or complete our Free Online Enquiry Form to arrange a free, no-obligation discussion.

How Do Halal Mortgages Work?

To be Sharia compliant, a loan must be a fair agreement between borrower and lender that allows the lender to make money without any interest being paid by the borrower. In addition, the bank or financial institution lending the money must not have other clients involved in impermissible activities such as gambling, distributing alcohol or selling non-halal meats.

The Halal Mortgages offered by Sharia compliant banks generally take one of three forms:

Diminishing Musharakah

The most popular form of Islamic finance is a Musharakah agreement. Under this arrangement, the bank purchases the property and you pay a single monthly payment that covers the cost of renting and also buys you a proportion of the house. Lender and borrower continue to share ownership of the house until the borrower has paid the full purchase price, at which point the deed will be transferred. This arrangement means that both parties share in any profit earned, but also equally risk losing money on the property.


Similar to a rent-to-own agreement, under a Murabaha agreement a bank will purchase a property on your behalf and then sell it to you at a higher price and on an installment basis. Under this agreement, the property is immediately registered to you, but the downside of a Murabaha agreement is that most banks will require a large deposit upfront, sometimes as much as 20%.


If you are not in the position to afford the deposit required by a Murabaha agreement, the Ijara may be a suitable option. In this arrangement, the bank purchases the property and grants you a lease. You pay monthly contributions to the cost of the property, and when you have paid back the total cost to the bank, the legal title will be transferred to you.

Our Halal Mortgages Conveyancing Expert

halal mortgagesHalal Mortgages are a rapidly developing but still relatively new area of property law. Correctly meeting the standards necessary to be Sharia compliant can be a complicated process and requires experienced solicitors with a strong knowledge of Halal Mortgages and finance and good relationships with the institutions that offer these products.

Shakeel Mir is a Partner at the firm and is also the Head of our Residential Conveyancing and Commercial Property departments.  He has extensive experience in dealing with Halal Mortgages and has assisted many Muslim clients with purchasing or re-mortgaging a property.

Your matter will be personally handled by Shakeel and he will have an initial consultation with you, free of charge, to discuss your situation in more detail. Once he understands your circumstances better, he will provide you with a clearer understanding of how he can help you.  You will also be provided with a price quotation and a choice of funding methods at the outset.

Make A Free Enquiry

Our enquiry lines are open 24 hours a day, every day of the year.

Call 0800 086 2929, email info@elitelawsolicitors.co.uk or complete our Free Online Enquiry Form to arrange a free, no-obligation discussion and let our Halal Mortgages conveyancing expert explain your legal rights and options.

halal mortgages



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    Shakeel Mir

    Partner & Head of Department
    Commercial Property &
    Residential Conveyancing

    “From the start working with Shakeel has been a pleasure. I have always felt that good advice has been offered. One particular transaction progressed across the challenging times thrown up with the Covid 19 Pandemic with government restrictions changing daily and Banks being slow in responding. Shakeel calmly navigated all of this through to completion. I am using Shakeel on further transactions and will continue to do so and recommend him to friends and family.”

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