Home finance without interest — Sharia-compliant home purchase plans.
An Islamic mortgage — properly a Home Purchase Plan (HPP) — lets you buy a home without paying or receiving interest (riba), which isn't permitted under Sharia. Instead the bank buys the property with you and you pay rent on its share plus instalments to buy it out, or buy-and-resell at an agreed profit. As a whole-of-market, FCA-authorised brokerage, we place Sharia-compliant plans for buyers and contractors alike.
- TypeResidentialOwner-occupier lending
- Deposit / equity5–25%+Depends on the scheme and rate
- ServicePhone · video · emailAdvised around your schedule
- AdviceWhole-of-marketDirectly FCA authorised
How a Home Purchase Plan works
The two common structures are Ijara (lease) and Diminishing Musharaka (co-ownership). Under Diminishing Musharaka, you and the bank co-own the home; you pay rent on the bank's share and gradually buy that share until you own it outright. No interest is charged — the bank's return comes from rent or an agreed profit, not compounding interest.
Is it regulated like a normal mortgage?
Yes. FCA-regulated Home Purchase Plans carry the same consumer protections as a conventional residential mortgage, so you get regulated advice and clear disclosure. The economics can be broadly comparable; the structure is what differs.
For contractors and the self-employed
Sharia-compliant providers assess income much like other lenders, so day-rate and self-employed applicants are welcome — we present your income the specialist contractor way. See IT contractors and self-employed.
Buy-to-let and Sharia finance
Sharia-compliant buy-to-let plans also exist for investors — compare with buy-to-let.
Talk it through
Speak to an adviser to explore whole-of-market Sharia-compliant options.
Sharia-compliant providers — a selection
Lender guides: Halifax · Barclays · HSBC · NatWest · Nationwide · Accord · Clydesdale · Yorkshire BS · Kensington See how we place cases →
Islamic (Sharia-Compliant) Mortgages, answered
What is an Islamic mortgage?+
It's a Home Purchase Plan that lets you buy a home without paying interest, using a co-ownership or lease structure so the arrangement is Sharia-compliant.
Is it more expensive than a normal mortgage?+
Not necessarily. The economics are often broadly comparable to a conventional mortgage; the structure and terminology differ rather than the affordability.
Are Islamic mortgages FCA-regulated?+
Yes. Regulated Home Purchase Plans carry the same consumer protections and advice standards as conventional residential mortgages.
Can non-Muslims use an Islamic mortgage?+
Yes. Home Purchase Plans are available to anyone who prefers an interest-free structure, subject to the provider's criteria.
Can contractors get a Sharia-compliant mortgage?+
Yes. Providers assess day-rate and self-employed income much like other lenders, and we present it the specialist contractor way.