Governmental program Help to Buy was revised in accordance with the laws of Sharia. Now people who prefer Islamic mortgage due to their religious beliefs, will be able to take advantage of Help to Buy benefits, according to ee24.com citing propertywire.com.
Help to Buy is a program for first-time buyers of property in the UK. Its essence is to provide mortgages on favorable terms. Banks providing Islamic mortgages (also known as the Home Purchase Plans) previously could not offer their customers this program because the religion forbids the charging of interest on loans.
Islamic mortgage assumes that the buyer acquires a part of the property, and pay the rent to bank for the remaining space. In fact, this payment is the disguised loan, but all the religious requirements respected.
Now Help to Buy, ie state participation, will be available under above conditions. Islamic Bank of Britain has announced the inclusion of Help to Buy scheme in their mortgage.