Mortgage consultancy and sale : are my job and earning Halal ?

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I am in a dilemma and would really appreciate some help and guidance. With the grace of Allah Tala I am very lucky to have been on the path of Islam now for over two years. My questions refer to my Job and earnings and the Services I provide. I live in the UK. I have read so much on ? Riba ?, its validity in modern times, its interpretation by various scholars and implementation by various parties. Through my readings I am satisfied that any type of contractual increment in a contract ? is classed as Riba and that which is defined in our Holy Quran (although many people argue why this is not the case, or why in modern times or circumstances we can enter into contracts that involve interest and how such things as basic interest, soft loans or mortgages are acceptable as they are mutual and no ? real exploitation ? exists and they are a means to live in some parts of the world). On a personal level, my basic understanding is that all these types of loans which involve a contractual increment i.e. interest (whether we choose to or want to believe it or not) are not permissible. I have a financial services business which I have spent time building and invested heavily in. My primary concern is about the fees I charge to help people obtain mortgages. I offer life insurance, home insurance, pensions and mortgage advice. My business does not fund any of these services for our clients we merely act as a middle man between lender and borrower. We charge a fee for our time, introduction and assessment of the client. Once the client enters into a relationship with the bank or lender they then pay us a fee for our services. We may have no further dealings with that particular client and lender and they form their own relationship. Our fees are expressed Up-front ; we give the client options and let them choose. Our relationship is neutral we neither know the lender or borrower. We get approached to help arrange services and then we approach lenders to provide these services. All the contract are in writing and each party know their involvement, fee, term, etc. Is the money we receive in lieu of services permissible ? Bearing in mind our services are for providing advice on interest related products (although we do not provide the finance or pay any interest). I am a family man, this is my livelihood and in my heart I do not believe that the services we offer, offend, exploit or take advantage of anyone. We are quite unique in our industry as we do not recommend the products to clients that make US the most money or fee, but we really try and are fair and help the client by giving impartial advice and not charging excessive fees. We have integrity in our services and our staff follow the same way of working. Your help for me to try and understand would be very much appreciated. May Allah Tala help and guide us all. Your Brother Menaz

Fatwa

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Publication Date

2007-05-23

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-785365

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