QUESTION: Halal Mortgages? Any experience?

[شمله ور خراساني]

السلام علیکم و رحمة الله و برکات

Does anyone have any experience with Halal Mortgages? Please share your experience with us.

[tor_khan]

السلام علیکم و رحمة الله و برکات

Does anyone have any experience with Halal Mortgages? Please share your experience with us.

Yes Sangar.

It's a bit of of an epic story that (sadly) ended with me having to take a conventional mortgage which I hate because it doesn't accord with my ethics on fair finance. I'll give you the potted version of events:

• Bought a brand new house.
• Was posted overseas.
• House sat empty whilst I was working away
• Monthly rentals increased on empty house after a year of sitting empty. I asked why - they said inflation following interest rate rise.
• Decided to let the property out. Lenders said I could not do this. Rents increased again.

My question is. If the mortgage is Halal, then why do monthly payments bend to rises in interest rates?

In fact, I honestly believe that the problems that we have in the Muslim world and the developing world in general is because we are whole-scale sold into bondage to the capital interests of banks that serve a few who will present any number of options, but none of them truly in accordance with ethical principals of banking. I'm led to the conclusion that there's no such thing as Halal Mortgages in actuality because all banks pretty much work in the same way.

[spogmai shaglay]

This is something new to me....Halal Mortgage...interest rates and incraesing then terming it as halal.....

anyways....tor khan ur case reminds me of this
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain...

[Dreamer]

The bank buys the house... it charges you rent.... after a set number of years you aquire the house via means of a "gift" or a pre set agreement