Halal mortgages · UK · checked 12 September 2026

Buy a home without riba, and know exactly what it costs.

Four FCA-regulated providers will finance a home for a UK resident in 2026. Here is what each one charges at your deposit, who they turn away, and the one line in the pricing that is worth more than everything else you can do.

4 regulated providers Deposits from 5% Rates from 5.68% No fee from any provider

Start with your number

£
10%

£30,000

Where is the property?
Cheapest monthly payment, 2 year fix
£1,703/mo

With Gatehouse Bank at 6.48% on £270,000 of finance over 30 years.

Add £30,000 to reach the 80% band and pay £313 a month less.
Compare every provider at this deposit

Indicative, based on providers' published rates on 12 September 2026. Not an offer.

What it is

A halal mortgage is not a mortgage. It is a purchase and a lease.

Providers call it a Home Purchase Plan. You and the provider buy the house together. You rent the share you do not own yet, and every month you buy a slice of it back. No money is lent, so there is no interest and no debt with your name on it.

A conventional mortgage

The bank lends you £270,000 and you owe it, plus interest.
Interest is a charge for the use of money over time.
The bank owns a debt. The house is security for it.
You redeem a loan balance when you sell.

A Home Purchase Plan

The provider buys 90% of the house. You buy 10%.
You pay rent on their share, and buy slices of it back.
The provider owns bricks on its balance sheet, not a debt.
You settle their remaining share when you sell.

How it runs, in three parts

01
You buy the home together.

Your deposit is your share. The provider funds the rest and owns that share. This is the diminishing musharaka, a partnership that shrinks.

02
One payment, two parts.

Rent on the provider's share under a lease, plus an acquisition payment that buys a slice of it. On £270,000 at 6.48%, the first payment of £1,703 is £1,458 rent and £245 ownership.

03
Their share shrinks, so does the rent.

By the end of the term the provider transfers its last slice and the lease ends. Overpaying, which Gatehouse allows at 10% a year with no charge, makes the curve steeper.

Who owns what

A £300,000 home, 10% deposit, 30 year term, reverting to 7.25% after a two year fix.

Yours 12%The provider's

After the two year fix you own 12% of the house, which is £36,261 of it.

Who will finance you

Four providers, and they do not want the same customers.

Rates and payments below follow the deposit and region you set at the top of the page. Change either and the cards re-rank, including the ones that rule you out.

Payments assume a 30 year term on your price and a two year fixed rental rate, on an acquisition and rent basis. Your own rate depends on affordability, credit history and the property.

ProviderMax financeWhereFinance sizeIncome multipleFeesShariah board
Gatehouse Bank
FRN 475346
95%England and Wales£75k to £5m6x to 80% FTV, 5.5x to 90%, 4.49x above£149 + £499 (£999 above 80% FTV)Own Shariah Supervisory Board
Offa
FRN 1000573
95%England and Wales£60k to £1mUp to 7x, subject to affordability£149 + £499 (£999 above 80% FTV)Amanah Advisors
StrideUp
FRN 785299
90%England only£50k to £1.5mNot published£1,249 product feeAmanah Advisors
Kuwait Finance House
FRN 131818
70%London, Home Counties, Manchester, Milton KeynesFrom £250kBespoke underwriting0.75% of the financeKFH Shariah Supervisory Board

Who is not on the list, and why

Al Rayan Bank no longer takes new UK-resident home finance customers and serves Gulf-based customers instead. Existing plans carry on. Nomo finances UK property including Scotland, but only for GCC residents. Habib Bank Zurich is buy-to-let and commercial only. QIB UK is private banking.

Not regulated plans

Pfida, Wayhome, Keyzy, Yourhome and Heylo are not FCA-regulated Home Purchase Plans, so there are no FCA conduct rules and no Financial Ombudsman. Pfida is Shariah-certified and prices its rent from market rents rather than Bank Rate, which some people prefer, but it runs a long waiting list and asks for 15% to 20% equity. Worth knowing about. Not compared here.

The line that matters

Every pound of deposit helps. One band is worth double.

Providers price in bands of finance-to-value, not on a smooth curve. Crossing from the 90% band into the 80% band cuts the rate by 0.8 of a percentage point in one step. Here is the cheapest monthly payment at each deposit, on your price.

£218

What the last £15,000 before 20% is worth, every month

The £15,000 before that one saves £95, because it buys no new band. Stopping at 15% is the most expensive place to stop. If you are within a year of 20% at a saving rate you can keep up, the arithmetic says wait.

The part people underestimate

The cash you need on completion day.

It is never only the deposit. Stamp duty is charged once on the full price, the same as a mortgage, because the alternative property finance rules treat the plan as one purchase. Then there are provider fees, and the legal and survey costs nobody quotes you until late.

Most first-time buyers we speak to are out by five to ten thousand pounds on this number.

On your price and deposit, in the region you chose above.

Deposit£30,000
Stamp Duty Land Tax£0
Provider application and product fees£1,148
Valuation, legal work and survey£2,500
Cash needed on the day£33,648

Stamp duty uses the rates in force for England and Northern Ireland from 1 April 2025, Scotland's LBTT and Wales's LTT. Legal and survey costs are a typical estimate.

The question everyone gets asked

"It's just interest with a different name."

If you have told a relative you are looking at this, you have heard it. The rent is benchmarked to Bank Rate, so the monthly number does look like a mortgage. That is by design: a provider has to be competitive or nobody would use it.

The position every UK provider's Shariah board takes is that using an interest rate as a pricing reference is permitted, as long as the contract itself is a real sale and a real lease and no interest is charged on money. A minority of scholars reject that, on the basis that an outcome close enough to a mortgage makes the form a device. That disagreement is real and we are not going to pretend otherwise.

We are not scholars and we do not issue rulings. What we can do is show you the contract, tell you who certified it, and give you the two questions worth putting to the scholar you trust: how they view benchmarking to Bank Rate, and how they view that provider's arrears terms.

ProviderCertified byStructure
Gatehouse BankGatehouse Shariah Supervisory BoardDiminishing musharaka and ijara
StrideUpAmanah Advisors, Mufti Faraz AdamDiminishing musharaka and ijara
OffaAmanah Advisors, Mufti Faraz AdamCo-ownership and lease
Kuwait Finance HouseKFH Shariah Supervisory BoardCommodity murabaha direct, ijara plan via a broker
The gap nobody talks about

If you are buying in Scotland or Northern Ireland, there is nothing for you.

Not one regulated provider open to UK residents lends there in September 2026. Gatehouse and Offa stop at the Welsh border, StrideUp covers England only, and KFH is London and a handful of English cities. Nomo does lend in Scotland, but only to residents of the Gulf states.

That is roughly 130,000 Muslims in Scotland and Northern Ireland with no regulated halal route to a home of their own. We will update this page the day it changes.

NationProviders open to you
EnglandGatehouse, Offa, StrideUp, KFH in some areas
WalesGatehouse, Offa
ScotlandNone
Northern IrelandNone
Straight answers

The questions we get most.

Is a halal mortgage the same as a Home Purchase Plan?
In everyday use, yes. Providers say Home Purchase Plan because there is no loan and no interest. Regulated plans sit under the FCA's mortgage conduct rules, so you get the same protections, including the Financial Ombudsman.
Do I pay stamp duty twice, since the provider buys the house too?
No. The alternative property finance rules in the Finance Act 2003 treat the plan as one purchase, so tax is charged once on the full price and you pay it. First-time buyer relief applies as normal in England and Northern Ireland, nothing to pay up to £300,000.
Can I get one if I am self-employed?
Yes. StrideUp works from one year of accounts, Gatehouse usually wants two, and Offa assesses case by case. Contractors are considered by all three.
Can my family gift the deposit?
All three mainstream providers accept gifted deposits with a signed declaration that it is a gift and not a loan. StrideUp accepts gifts from friends as well as family. Offa's Family Assist lets a relative hold a share of the plan instead of handing over cash.
What happens if I miss payments?
The same as a mortgage. Your home may be repossessed if you do not keep up payments on your Home Purchase Plan. Speak to the provider early, they all run arrears processes under FCA rules.
What if the provider goes under?
A Home Purchase Plan is not a deposit, so FSCS is not the relevant protection. Your share of the home and your lease do not disappear. The provider's share and your plan would normally pass to another institution or an administrator on the same terms. That is what happened to the Alburaq book when Bank of Ireland left the market, and Offa administers those plans today.
Do I need a broker?
No. Gatehouse, StrideUp and Offa all take direct applications and Gatehouse gives free advice on its own products. A broker earns their fee when your case is unusual: several applicants, a new build flat, complex income, or a property one provider will not touch. KFH's fixed rates are broker only.

Not sure which of this applies to you?

An hour on your own numbers: where you sit against the 20% line, what you can realistically afford, the full cash you need on the day, which providers' published criteria match your situation, and a month by month timeline. You get a one page written plan within 48 hours.

Education, not advice. We do not recommend a provider or assess your eligibility for a plan, because those are regulated activities. 10% of every fee goes to the National Waqf Fund.

Home Buying Plan call
£149

60 minutes, one page written plan, your numbers run before we speak.

Book the call Or run the free calculator

Methodology. Rental rates are the standard purchase rates each provider published for UK residents on 12 September 2026: Gatehouse Bank's HPP product guide, StrideUp's rate finder, Offa's HPP product list and Kuwait Finance House's owner-occupied product sheet. Payments are calculated on an acquisition and rent basis over the term shown. Stamp duty uses HMRC, Revenue Scotland and Welsh Revenue Authority rates current at that date. Bank Rate 3.75%.

Important. Ziyad Finance provides educational information and is not a financial or mortgage adviser. This page does not arrange, advise on or recommend any Home Purchase Plan, and Ziyad Finance receives no fee from any provider named on it. Provider links go to the provider's own website. Home Purchase Plans are secured on your home. Your home may be repossessed if you do not keep up payments under your Home Purchase Plan. Shariah compliance is based on each provider's own certification. Verify with your own scholar if unsure.