Islamic Finance & Halal Mortgages?

[newcomer]

I woud like to know if Halal mortgages are in fact permissible, major High St banks are now offering Halal mortgages based on Ijara / diminishing musharakah.

Are these forms of finance in compliance with the Ahle Sunnat Wal Jamaat Aqaeed?

Where are the Ahle Sunnat Wal Jamaat scholars that specialise in Islamic finance, others have unfortunately taken the lead on this issue and have become the 'authority' in this area.

[Imam]

Bismillahir Rahmanir Raheem

Wa'alaykum 'Assalam wa Rahmatullahi wa Barakatuhu


All Praise be to Allah who is the Lord of the worlds and may Endless Blessings be showered upon His most Beloved, and Final Messenger of Islam, Hadrat Muhammad Mustafa Salla Allahu ta'ala 'alayhi wa 'aalihi wa Sallam


Jazak'allah for your question. Although halal mortgages alongside other mortgages are permissible (ja'iz), it is however not an issue in regard to the aqa'id of the Ahl as-Sunnah wal Jama'ah, but is a shar'i issue (mas'alah). For full details of why is it halal to take out a loan or a mortgage when the need arises, please refer to the answer under the heading 'loans and interest', in the Ask Imam archives section.


In this section, I have outlined the judgement which Mufti Ahmad Yar Khan Na'imi Rehmatullahi ’Alaih, has made in his 'Tafsir-e-Nai'mi, under the verse 'ahal allahul bay'a wa harramar riba.'


Mufti Sahib was a student of Mawlana Sayyad Muhammad Na'imuddin Muradabadi Rehmatullahi ’Alaih, who was in turn a Khalifa of Imam al Ahl-as Sunnat Shah Ahmad Rida Barelvi Rehmatullahi ’Alaih. The school of thought was one, as the principles outlined in Fatawa Ridwiyyah and other leading books of the Ahl as-Sunnah wal Jama'ah, in relation to the difference of obtaining a debt with accrued interest in an Islamic state, and that of obtaining it in a non-Islamic state, and how it differs.


Therefore it is not feasible to say that 'others have taken the lead on such an issue, and have become the authority', as the rules of our school of thought had far earlier been established, to what the others seem to propogate now. By studying both schools of thought, you will find that one is very narrow in it's judgement, as the other applies all the relative laws equally, and with ease, causing no harm towards the belief or the iman of the follower in question.


May Allah the Almighty give us all the tawfiq, to study the books of our Greats, so that we may live our lives according to the Qur'an and Sunnah, and not be subject to hypocrisy. (Amin)



Wallahu A'lamu Biththawaab



M. Waseem Ashrafi