Our team of experienced mortgage advisors will guide you through the mortgage application process and provide personalized advice tailored to your unique financial situation.
We specialize in Islamic finance and adhere to stringent Sharia principles in all our transactions. Our solutions are designed to be halal and free from any interest-based elements.
We have established strong relationships with a wide network of lenders who offer Islamic finance products. This allows us to access a variety of options and negotiate favorable terms on your behalf.
Sunnah Finance is a leading Islamic mortgage facilitators committed to providing ethical and Sharia-compliant financial services. With our extensive network of lenders and our deep understanding of Islamic finance principles, we help individuals and families secure the mortgage financing they need while adhering to their religious beliefs.
The Islamic law of Sharia forbids the charging and paying of interest on mortgages, something which is commonplace in standard UK mortgages. This can provide difficulties to Muslims looking to purchase property in the UK, as most mortgage lenders do not work to Sharia law.
There is a misconception amongst the general public that Islamic finance is the same as conventional, simply because both specify the finance cost as a percentage. This is a huge misnomer because using a percentage is just a method of pricing. What is most important is not the use of the percentage, but rather what such a percentage represents.
Islamic finance is a system based around finances that comply with Sharia (Islamic Law). There are two different types of Sharia finance, mudarabah ( partnership in profit in which one partner provides capital) and musharakah (an agreement between two or more partners to combine their assets, services, obligations or liabilities for the purpose of making profit).
The Islamic finance concept can also refer to the investments that are permissible under Sharia. There are specific rules that apply to Islamic finance, which differ from conventional finance. This is particularly true of mortgages, which are conventionally different to standard financial practice.
Firstly, Islam considers that lending money with interest payments accrued is an exploitative practice that favours the lender. According to Sharia law, charging interest is strictly prohibited.
Any activities which contravene the fundamentals of Islam such as investing in businesses that produce and selling alcohol or pork, are prohibited. The activities are considered haram and so any financial institution that invests money into these practices is forbidden.
Thirdly, Sharia law strictly prohibits speculation or gambling with finance, which is called maisir. Islamic financial institutions cannot therefore be involved in practices which speculate on future events.
Finally, Islamic finance bans participation in any transactions with excessive risk. The term ‘gharar’ measures how risky an investment may be. Gharar defines such practices as derivative contracts and short-selling, which are forbidden in Islamic finance.
