Furthermore, Help to Buy will now apply to Islamic mortgages
, which is a big boost to Islamic homeowners as traditionally their mortgages have been regarded as being more expensive.
HPPs are a Sharia law compliant alternative to mortgages and are often referred to as Islamic Mortgages
, Sajid Javid, the financial secretary to the treasury said.
Help to Buy Islamic mortgages
will be provided by the Islamic Bank of Britain, which is owned by Qatar's second-largest bank, Masraf Al Rayan (MARK.
Home Purchase Plans (HPPs) are a Sharia law compliant alternative to mortgages and are often known as Islamic Mortgages
We have already removed the double tax on Islamic mortgages
and extended tax relief on Islamic mortgages
to companies as well as individuals, and just last week we made new commitments to open up new forms of student loans and business start-up loans for Islamic students and entrepreneurs," he said.
In the United Kingdom, Islamic mortgages
have been structured under two different contracts.
The Cagamas ICPs will be issued under the Islamic Commodity Murabahah structure on 25 March 2013 and proceeds from the issuance will be used to fund the purchase of Islamic mortgages
from the financial system.
To comply, interest is not paid on Islamic savings or current accounts or applied to Islamic mortgages
Prospects for further growth in Islamic mortgages
in Canada seem encouraging with the Muslim population projected to grow as a percentage of the Canadian population from approximately two per cent currently, or 1 million Muslims, to as many as 6 million Muslims, or six per cent of the Canadian population in 2031.
The industry has also witnessed increasing number of non-Muslims availing Islamic mortgages
reflecting inclusive approach of Islamic finance,' he added.
However, for Islamic mortgages
, "it is possible public auctions won't be necessary, but we are still working on the execution process," said Jody Waugh, a partner at Al Tamimi & Co.
AaAaAaAaAaThe first action taken by any country serious about Islamic finance is usually to remove any tax barriers; for example, the double taxation that can occur on Islamic mortgages
when title to the property needs to be transferred twice (first from the seller to the bank, and then from the bank to the eventual owner).