If you are looking to buy a home in a way that aligns with Islamic values, choosing the right provider is one of the most important steps. In the UK, there are a number of banks and finance companies that offer halaal home finance, but they are not all the same.
Some offer different models. Others have unique fees, approval processes or eligibility rules. A few are fully Islamic banks, while others offer shariah-compliant products alongside conventional ones.
This page will help you understand what to look for, which providers are available in the UK, and how to make the right decision for your situation.
Indeed, Allah commands justice, kindness and fair dealing.
Surah An-Nahl, verse 90
What to look for in a halaal mortgage provider
Before comparing providers, it is useful to know what actually matters. It is not just about monthly costs or deposit size. You want a provider that is not only affordable, but also transparent, ethical and truly compliant with Islamic principles.
Here are key things to check:
Shariah compliance
Is the product reviewed and certified by a recognised Islamic scholar or shariah board? Do they explain how they avoid interest?
Finance model
Does the provider use a model you understand and trust, such as diminishing musharakah or murabaha? Learn more about the Types of Islamic Home Finance if you are unsure.
Fees and costs
Are there setup charges, early exit fees or extra admin costs? Is the rent or profit rate fixed or variable?
Customer service
Is the process explained clearly? Are they responsive to questions? Do they understand the needs of Muslim buyers?
Deposit and income requirements
Do they accept smaller deposits or help first-time buyers? Are they flexible with self-employed applicants?
Islamic home finance providers in the UK
Below is a brief overview of some of the main providers currently offering Islamic home purchase plans. This is not financial advice, but a starting point to help you compare.
Al Rayan Bank
One of the UK’s largest Islamic banks
- Offers diminishing musharakah model
- Fixed and variable payment options
- Available for residential and buy-to-let properties
- Strong shariah governance
Gatehouse Bank
Focused on home finance and ethical banking
- Diminishing musharakah structure
- Available for UK residents and expats
- Allows purchase, refinance and buy-to-let
- Competitive rates and professional service
UBL UK (United Bank Limited)
Offers Islamic home finance through shariah-compliant models
- Murabaha-based products
- Primarily for home purchase and refinance
- Works with salaried and self-employed applicants
Ahli United Bank (UK)
Offers Islamic mortgage alternatives to selected clients
- Products may vary and are typically offered through advisers
- Check eligibility and availability
QIB (UK) – Qatar Islamic Bank
Offers high-value Islamic home finance
- Caters mostly to high net worth individuals
- Products available through brokers
- Based on Islamic principles but tailored for specialist clients
We will continue adding to this list as more providers enter the market or update their offerings.
How to choose the right provider
- Start with your goals
Are you buying your first home, remortgaging, or investing? This affects which providers are suitable. - Check your affordability
Use an affordability calculator or speak to an adviser. Providers will want to see if you can manage the monthly payments. - Read the small print
Make sure the product really avoids interest and does not include clauses that contradict Islamic finance rules. - Use comparison tools
Our Get Matched with a Provider feature helps narrow down options based on your situation. - Ask questions
Do not be afraid to contact the provider directly. A good Islamic finance company will answer clearly and honestly.
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Compare Home Finance FAQ’s
No. Some are fully Islamic banks while others are conventional banks that offer Islamic products. Their models, fees and processes may vary. Always check the details before applying.
Yes. Some banks offer halaal buy-to-let options, especially for experienced landlords or those with higher deposits. These products must still avoid interest and follow shariah rules.
It depends on the provider, but most applications take between two and six weeks from start to finish. Having your documents ready can speed up the process.
It varies by provider, but most require at least 10 to 25 percent of the property value. Some may accept less depending on your income and credit history.
No. Anyone can apply. The products are based on ethical principles and shared ownership models that are open to all, regardless of religion.
Some providers work only through brokers. Others accept direct applications. A broker with Islamic finance experience can help you compare deals, but may charge a fee.
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