Muslim Mortgage Market Set for Growth
Volume of Muslim mortgages forecast to grow 47% a year
29th July 2005
Market research group Datamonitor hase predicted dramatic growth in the Muslim mortgages market, with a forecast yearly 47% growth in volume meaning the market could be worth £1.4bn by 2009.
Traditional mortgages are not compliant with Islamic law, which forbids charging or paying interest, and until recently there was only one Sharia-compliant mortgage provider in the UK. The picture changed when high street banks including Lloyds TSB and HSBC introduced their own Muslim mortgage products.
Even so, the total value of such mortgages is currently only £164m according to Datamonitor, although they predict this will move sharply upwards with the products now available in banks' extensive branch networks.
One factor holding development back has been the lack of FSA regulation for Muslim mortgages, which meant mainstream lenders have been reluctant to offer them, although legislation to bring Islamic finance under the authority of the FSA is expected soon.
Read More: BBC Report
|
More on Muslim Finance : Lloyds Extends Islamic Banking Pilot (News, 15/11/2005), First Muslim Child Trust Fund Announced (News, 29/06/2005), Lloyds TSB Launches Muslim Mortgage (News, 22/03/2005), High Street Bank Offers Islamic Account (News, 16/02/2005), CTF: No Options for Muslims (News, 07/02/2005), See all 7 Muslim Finance stories >>> |
Home - Mortgages
