Question Summary:
Are Islamic Bank of Britain mortgages Shariah compliant? Question Detail:
I would to ask if the mortgages provided by Islamic bank of britain are halal or not.
Answer :
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Brother in Islam,
In ascertaining the Shariah compliancy of an investment product, the following three steps are vital.
The concept itself must be accepted in Shariah, for example, it is Musharakah product or Mudharabah product etc.
The contract must reflect the actual reality of the concept, i.e. all the preconditions (شرائط), active conditions (اركان) of the concept must be properly reflected in the contract.
Apart from the concept and a proper contract, the correct implementation of the contract is equally important. If a condition is not fulfilled or the sequence is incorrect, that could render the contract unislamic despite the contract being Shariah compliant.
In order to monitor the correct implementation of the contract and its sequence, we recommend an in house Scholar (Aalim) who has experience in Islamic Finance to supervise the Shariah compliancy and the investment product.
Ideally, the in house Scholar must be independent and not be subjected to pressure from the administration of the bank that leads him to compromise the Shariah compliancy of the product.
For further details on this you may contact Mufti Farazs Adam of Leicester, UK. He is a competent Mufti with good understanding in Islamic Finance and Economics. His website address is: http://darulfiqh.com/
And Allah Ta’āla Knows Best
Saleem Ibn Sajawal Khan
Bradford, UK
Student Darul Iftaa
Checked and Approved by,
Mufti Ebrahim Desai.
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