Question:
What is the ruling on using al rayan bank for mortgage? If it is not permissible which route can someone take to owning a home in the uk using halal methods?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Answer
Regarding Al-Rayan Bank, Darul Ifta Birmingham’s position is as follows:
“The conclusion of Darul Ifta Birmingham is that Al Rayan Bank’s mortgage scheme should be avoided, but it is better than going to a normal non-Islamic bank. One should avoid it but as a LAST and FINAL resort (i.e. this mortgage stands against another non-Islamic bank’s mortgage”.
Regarding alternatives, we suggest consulting your local Ulema. Kindly refer to the following link for more details:
http://daruliftabirmingham.co.uk/al-rayyan-housing-scheme/
Only Allah knows best
Written by Maulana Mohammad Ahsan Osmani
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham