Q: Can I sell property to a buyer with a conventional mortgage? We are in the business of buying and selling properties in the U.K. and wish to ensure that our business is ethical, halâl and permissible. We list below the 3 options of conducting our business on which we would be pleased if you […]
Read more...Category: Mortgages and Loans
Can someone stuck in a ribā-based loan give voluntary charity, or do they need to pay off the ribā-based loan first?
Q: Can someone stuck in a riba-based loan give voluntary charity, or do they need to pay off the riba-based loan first, given that is a duty, and thereafter resume with giving voluntary charitable donations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: One who has taken a haram loan or a conventional mortgage should […]
Read more...Home Purchase Plan vs Conventional mortgage? Example
Q: My question is in regards to Home Purchase Plan via Conventional mortgage. I have had a HPP from an Islamic Bank (Ar Rayyan) now for 4 years. I have noticed during these 4 years that the rent/purchase ratio of the monthly statements fluctuate drastically from month to month and as an average – every […]
Read more...Is the government contribution in the help to buy scheme permissible?
Q: Is it permissible to have a savings account for a help to buy scheme where, if u have about £12000 the government will give you £3000? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: The contribution paid by the government in an Help to Buy: ISA is actually a gift and not […]
Read more...Are the products offered by Al Rayan bank Shari’ah compliant?
Q: Are the Home Purchase and Buy to let products offered by Al Rayan Shari’ah compliant? A: Al Qalam Shariah Panel have not audited Al Rayan bank’s products hence we are not able to comment on their shariah compliance. Each of the banks that offer Shari’ah compliant home purchase plans have a panel of external […]
Read more...Is it permissible to take a business loan which requires payment of an insurance premium?
Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal corporate ethics. Based on the loans agreement drafted by our client and we guarantee that our client will only enter into a legitimate business transaction as proposed with the funds. Legal & General Insurance company hereby guarantee the safety […]
Read more...Can interest money be used for paying Council Tax and car insurance?
Q: Can interest money received be used for paying Council Tax and car insurance? Additionally should interest money be disposed with non Islamic charities? A: Interest money cannot be used to pay council tax or car insurance. It should instead be given to the poor or utilised in public welfare projects without any intention of […]
Read more...Is it permissible to have a fixed return in a profit sharing agreement?
Q: Is it permissible to have a fixed return in the following profit sharing agreement? A lender agrees to provide an interest free loan to a businessman. Separately, the businessman will in the near future be completing a trade and selling certain goods to his customer. The lender wants to raise a contract to stipulate that the businessman will pay back the […]
Read more...Can we take a mortgage in order to own one house?
Q: Alhamdulilah my family has kept away from bank loans and mortgages due to interest involvements but as everyone knows house is a necessity so some scholars do say one can compromise on interest issues when it comes to buying one house in your life time,please clarify how strong is this argument.what should one do in […]
Read more...Is it permissible to take out a business loan or commercial loan?
Q: If looking to buy and take over a business, is it permissible to take out a business loan or commercial loan? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: It is not permissible to take out a conventional business loan when looking to buy and take over a business. A an interest bearing loan is […]
Read more...Is the NewShare scheme shariah compliant?
Q: My local council offers this scheme, called Newham NewShare . From the website it states: “An equity loan from us will make up the difference. The type of property you want to buy will decide what percentage of the cost you will have to fund from a mortgage and deposit. Equity loan fee When […]
Read more...Penalty for missed payments
Q: I’m renting a commercial shop and the contract has a clause regarding missed payments and interest etc… Can I say to ‘seller/landlord’ I will pay 10% on the rental amount if the rent is missed by 7 days and 20% if it’s missed by 14days? Please advise. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب […]
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