Moslem mortgages

[terambulan]

If moslems can't have mortgages how do they own property?

[lajohn]

Who said they can't have a mortgage?

[Sir Alec]

The Koran says they can't borrow or lend money

[Ice.Maiden]

Well the ones I know own their houses outright, so......????

[terambulan]

Ice are the ones u know very rich so that they dont need mortgages or are they working folk?

[lajohn]

Which category does their mortgage fall under - them borrowing from the bank or the bank lending them money?

Those who I know, some are rich and don't have a mortgage, but some do have mortgages.

Another question - Is ok for them to accept interest from the bank on their monies, and do they?

[Ice.Maiden]

A bit of a mixture there, terambulan. Two are pretty well off, yes, and the other lives in what I consider to be a nice place. I know that when one of my friends got married, all her relatives gave the happy couple money - so that'd be a good start, I suppose.

And in these cases lajohn - they DO rake in interest from the bank, and all three are business people.

[jno]

the prohibition is on charging interest, not on lending money.

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

[naomi24]

http://www.islamicmortgages.co.uk/

[Lil O'lady]

The moslem communities round this area have a very sensible view on racking up debts ie don't do it. They work between extended families to make major investments such as house-buying possible, thus avoiding paying ridiculous interest rates for 20 years or more. The downside appears to be that you often end up living with your in-laws. As in Judaic law, Islam regards charging interest as the sin of usury.

[beso]

Yes it is only against charging interest.

The Jews did not have this prohibition and sometimes they borrowed money from them. This is one reason why the Moslems hate the Jews.

[keyplus90]

Borrowing money or lending money is not forbidden in Islam. Only interest dealing is Haram or a serious sin.

And the reasons are quite clear if you look at modern day financial commitments and all that comes with it. Now Islamic mortgage is available in this country so more people are moving towards it.

[terambulan]

Keyplus.....does that mean that moslems have a system of borrowing money without paying interest?

Surely they can't keep such an excellent facility to themselves......tell me more, gotta join that.

[Octavius]

From what I understand, any interest that is due is factored into the loan as a general repayment to the purchaser (bank) or as a payment of rent.

For instance, if you make an offer that is accepted on a property, let�s say �100,000. Typically your mortgage would be a 25 year repayment - say at 6% - would total around �195,000 at the end of the term. So the bank buys the property at �100,000 then sells it to you for �195,000 (presumably with some premium factored in for interest rate fluctuations) then you pay it back monthly as rent.

I think that�s generally how many of them work, unless anyone has a better idea.

[keyplus90]

As a general rule in Islam when someone borrows money it is advised that the money should be tied to a commodity. Gold is the most preferred say you borrow from someone money worth of 200 gram gold. Now you pay back equal to the price of 200 gram gold whenever. There are no periodic interest and the reason in Islam is given that if Allah has given you wealth then you should help the needy with that and not take the advantage as it happens in the case of interest. You keep on paying and it never finishes, you start paying interest on interest and on and on . But on the other hand Islam advise you not to borrow unnecessarily because it puts burden on you financially and mentally. But it is not completely forbidden as in your life sometimes you may genuinely need help. That is the reason in Islam loans are not supposed to finish when a person dies, because according to Muhammad (pbuh) if you die owing someone then you will not be forgiven unless that person says Ok I know he owed me but I forgive him. In Muslims countries parents and the relatives of the dead person announce before burying him that if he/she owed to someone please that person get in touch with us and we will take responsibility. That is general borrowing. Mortgage I do not have much knowledge but now a days on one Islamic channel that I usually watch there is a programme at night by the person who is known to be the father of Islamic banking in present time. Programme is called �Markets change, principles do not� on free channel on Sky satellite 820. I would say on that channel you may get unbiased and with reference information on all Islamic queries and answers.

[keyplus90]

Sorry I put there �parents and the relatives� It should just say relatives, or even good friends whoever wants to lighten the burden of the dead. In majority cases the person they owed he/she just ignores and forgives thinking it a good deed.

[rojash]

eerrrm... Doesn't the Bible condemn usury as well? So how do Christians get mortgages?

[Velvetee]

Many are cash buyers. Nowadays, there are companies which provide "mortgages" which are Islam friendly. I think it's more to do with the bank buying the property and leasing it to the "owners". There is a website called islamic mortgages, which explain in more detail.