''Muslim only'' mortgages ...

[naz_nomad]

Before you start 'kickin off' this post is not intended to incite any religious or racial hatred.

I was with my Lloyds TSB bank manager recently, and saw on the computer that they provide a 'Muslim' mortgage. She said it's because they don't believe in interest on money (or their religion doesn't allow them to have interest), or summat like that.

Does anyone know what the story is behind this belief ...

I'm not a wind-up, I am genuinely interested to find out why ... Thanks ... Naz x

[~posy-jo~]

hi naz!! as far as i am aware it is against islamic law to pay interest, also to receive interest aswell i think. sorry i couldn't help further xXx

[sn�gged]

How does the lender make any money on the loan then?

[funkymoped]

I want one of those mortgages.....

ive been paying interest for the last 22 years...
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[redcrx]

found this http://www.mortgages.co.uk/islamic-mortgage.ht ml

[~posy-jo~]

bit more info here naz xXx

http://www.mortgages.co.uk/islamic-mortgage.ht ml

[~posy-jo~]

haha snap redcrx!!!

[redcrx]

so they do pay an interest and i would think that, as the bank are unsure what interest levels will change to over the years, they probably set the 'interest' quite high

[sunflower71]

Are you trying to say that there is a mortgage where the bank lend you the money and you dont have to pay ANY interest back to them so its 0% interest?

sorry but i think that this is a load of boll0x

[sn�gged]

So interest is payable... they just call it something else ;o?

[redcrx]

sunflower. the links explain it. Basically the borrower tells the bank what house he has made offer on. The bank then buy it at that price and then sell it to the borrower at a higher price (their profit is the interest) then there is 0% interest on that second figure

[WoWo]

The reason behind this is because Muslims are not allowed to accept money without having earned it, therefore they cannot have interest on money and a muslim bank cannot earn interest from it's customers.

Its' the same with betting, it's not allowed simply because it is earning money without having worked for it.

[naz_nomad]

sunflower ... no-one said that.

[sunflower71]

Oh I should have researched it first before I wrote something!
Was too busy thinking about changing religions!

[redcrx]

lol, sunflower, who could blame you if it was true :)

[OBonio]

So does that mean they can only sell the house for what they bought it for hence sacrificing any equity? I can see a plan forming here....

[Pippa68]

I was going to say the same thing, OBonio.

Fancy looking for properties being sold by Muslims? I'll race ya! ;o)

[dot.hawkes]

Is it the case that banks buy lots of houses in advance and then offer them to their muslem clients? thereby snapping up cheap houses at auction say?

[naz_nomad]

maybe Dot ... it's a possibility