Fatwa ID: 07111
Answered by: Mufti Mohammed Haroon Hussain
Question:
It is famous that some UK muftiyaan kiraam issue a mutlaq fatwa that the first personal house can be purchased using conventional bank loans.
Is this true? Who are these muftiyaan kiraam? Do they have a write up?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
As far as our understanding on the matter goes, it is not permissible to get a mortgage, whether it be the first house or otherwise.
Allah (swt) has stated in the Quran:
يَاأَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ ۞ فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ
“O Believers, fear Allah and give up the usury that is outstanding if you are believers. And if you do not do it, then take a notice of war from Allah and His Messenger…” [Surah Baqarah: 278-279]
This is a very strong message when it comes to the severity of any transactions that are interest based and how harmful they are for the connection between us and our Creator. Mortgages are loans based upon interest1 therefore they will not be permissible, whether that be the first house or not. One does have other options that are available besides an interest-based mortgage and to help in this matter, we offer a few suggestions. There are certain types of contracts in terms of buying a house which would be permissible, and you can read this fatwa by Mufti Tosir sahib which explains them in detail: Islamic Mortgage – Darul Ifta Birmingham.
One can also live in a rented house, or borrow the money from friends and family to buy a house outright and then repay them over a period of time. One may also move to a country where house prices are cheaper. As there are currently a number of options available with which the necessity of a house can be fulfilled, there is no possibility of making something as severely prohibited as interest become permissible.
1 وهو فضل مال بلا عوض في معاوضة مال بمال – كنز الدقائق – جلد 2 – ص 318 – مكتبة البشرى
Only Allah knows best
Written by Mufti Mohammed Haroon Hussain
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
