Q: Many conventional banks have products called ‘Offset’ Mortgages. These are mortgages whereby: If i have a mortgage of 50K and savings of 50K the savings offsets the interest on the remaining mortgage value. So in the above case 50K mortgage, 50K savings means zero interest. Hence, is it permitted to take a conventional mortgage whereby […]
Read more...Tag: Miscellaneous Fatwā
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...What is the Islamic position on ‘Spread Betting’?
Q: What is the Islamic position on ‘Spread Betting’? Please find below two definitions given for this activity. From http://www.investopedia.com/terms/s/spreadbetting.asp Definition of ‘Spread Betting’ A type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), […]
Read more...What is the ruling on Binary options trading?
Q: What is the ruing on Binary options trading? الجواب حامدا ومصليا ومنه الصدق والصواب A: Please see the following link: http://alqalam.org.uk/fatawa/investments-fatwa/is-it-permissible-to-purchase-stocks-using-call-and-put-options/ Binary options (all-or-nothing options) are simply another form of call or put options and are not sanctioned in Islam.
Read more...How should ownership of a house be divided if both spouses contribute towards regular payments and also the initial deposit?
Q: How should ownership of a house be divided if both spouses contribute towards regular payments and also the initial deposit? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The ownership of your brother’s house depends on the understanding at the time of purchase between your brother and his wife. If the understanding was that the […]
Read more...Where a specific Fatwā is delivered tolerating an otherwise problematic practise, can an individual avail himself to this if he does not fit those specific requirements?
Q: Where a Fatwā is delivered tolerating an otherwise problematic practise, can an individual avail himself to this if he does not need to? I’m told that using cheques to cash money in accounts can be understood to become tolerated due to the need, as is also the case with car insurance. As far as I […]
Read more...Is trading “covered warrants” on the stock market permissible?
Q: Is trading “covered warrants” on the stock market permissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Warrants represent a right to purchase an asset similar to a call option and do not represent the underlying asset itself. Thus, they cannot be traded.
Read more...Can I accept a marriage proposal from an investment banker?
Q: Can I accept a marriage proposal from an investment banker? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: There is no sin in the marriage itself. However, if the marriage does go ahead then he will remain obligated to provide your maintenance via halal means and you should continue to encourage and urge him […]
Read more...How much should I be paying as child maintenance to my ex-wife?
Q: How much should I be paying as child maintenance to my ex-wife? The issues I have are quite straightforward. How much should a man be giving as maintenance to his wife/ex-wife for the children because the amount calculated by the Child Support Agency is ridiculous? Also, how can it be justified if the father […]
Read more...Is disbursing Zakāt funds for freeing of prisoners and covering their legal costs or family needs deemed permissible usage of these monies?
Q: Can we give Zakāt funds to free prisoners? Also can Zakāt funds be used to help finance their legal costs as there is no ‘ransom’ pay for most prisoners nowadays? Can we give Zakāt funds to their families left behind alone with no breadwinner? الجواب حامدا ومصليا ومنه الصدق والصواب A: The freeing of prisoners […]
Read more...Is it permissible to take out warranties on car repairs?
Q: Is it permissible to take out warranties on car repairs and parts, and to what extent? There is a scheme available, for £100 a year, where if any problems with the car, the policy covers both labour and parts. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Such warranties are a form […]
Read more...Can I be held liable for the tax evasion of my employers?
Q: What is the ruling on tax in Islam; specifically, employment tax? If I have a job where I am given cash in hand, so that the company can avoid tax, would I also be liable for escaping tax? Alternatively if I am hired privately to do a one off job, for example to paint […]
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