Buying investment property on conventional mortgage : mortgages to buy investment property

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I am writing to you with regard to taking a mortgage to invest in a property to rent in the future I own a property and live in UAE, the property i own is in UK and i am trying to buy a second one and may be more in the future to secure a source of income for myself in my old age and to my kids education in the future. I tried to go with Islamic type mortgages, however these type are first of all of a very high interest rate, non flexible, with non known banks ( might end up corrupted), the use the concept of that the bank buy the property, then the bank will rent it to me for a 25 years, following to that you I will own the property. The non Islamic deals will also let me pay toward the property in 25 years then I can own the property by the end of the term (25 years), with lots of flexible approaches and easier to deal with. I am finding it much easier to go with a non Islamic (even the so called Islamic bank use the same finance rules) bank to take a mortgage against buying a property. Please note that few years back even buying your first home using a mortgage was considered Haram, After Dr Qaradawi talked about it, it is Halal now. does that mean that may be in a few years time the second house will be non Haram because some body will think deeply that all the deals are the same ?? please advise thanks best regards

Fatwa

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Publication Date

2006-09-24

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-788881

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