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Natwest sets halal mortgage for commercial properties in UK

05 Nov

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NatWest bank has launched its first halal mortgage product, which is compliant with Shariah (Islamic) law. The new mortgage product available from NatWest Business Banking is for commercial properties and has been launched in response to strong customer demand and is specially tailored to the needs of the country’s two million Muslims. In accordance with Shariah law, the product will not charge interest. The bank is using the Islamic ‘Murabaha’ structure.

This means the bank will purchase the property from the vendor and immediately sell it to the customer. The price paid by the customer to the bank is repaid over a deferred period, and will consist of the price paid by the bank (less any customer deposit), and an element of profit for allowing repayment over a period of time. It has also been sanctioned by an internationally renowned and independent board of Islamic scholars.

NatWest has over 40 relationship managers across the country who are specially trained to meet the needs of the Islamic community, as well as a number of specialist banking teams to meet their needs, at the following locations: Bradford, Newcastle, London and Birmingham. The product is the first Shariah compliant facility that NatWest Business Banking has launched.

Chief executive officer of NatWest’s Business Banking team, Paul Lynam said: « We are committed to meeting the business needs of all customers. By introducing a Shariah compliant commercial mortgage, we are demonstrating our commitment to this growing community, and the broadening of our focus on this market. »

Source: M.E.N Media

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With the guidance of a Shariah Supervisory Board, The Royal Bank of Scotland has created a specialist product – ABT Finance, which allows companies to purchase commercial property with non-interest bearing finance.

 
2 Commentaires

Publié par le novembre 5, 2008 dans UK

 

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2 réponses à “Natwest sets halal mortgage for commercial properties in UK

  1. ribh

    juin 11, 2009 at 12:39

    @ Loga :

    Salam,

    I am not qualified to issue a fatwa or to discuss the fatwa of our eminent Sheikh Qaradawi. What I can tell is that Islam is an easy and logical religion : it only asks from people what they can bear. As stated in the fatwa you quote the permission is only given if ALL other possibilities are absent… like if it was a question of death or life, therefore one should be careful and think twice and trice before engaging in Riba.

    Allah knows best.

     
  2. Loga

    juin 10, 2009 at 8:56

    An interesting post on fatwa and peoples use of them on riba and mortgages:

    http://loga-abdullah.blogspot.com/2009/06/halaal-riba-mortgage.html

    like to hear your opinions

     

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