Q: Can I apply for an interest-based mortgage on behalf of a family member who is unable to as they will be paying for all costs involved?
الجواب حامدا ومصليا و منه الصدق والصواب
A: It is not permissible to do this because the lender with be contracting an interest based loan with you which you will agree to. Thus the contract will be between you and the lender and not your relative, even though your relative agrees to make the payments on ‘your behalf’. Additionally, this is also deception on your part and if disclosed to the lender the lender is likely not to approve the loan. Even if the lender was contracting with your relative you would be assisting in sin.
You should advise your relative to opt for what is known as an Islamic mortgage as he will be free of the sin of interest.