Fatwa ID: 05134

Answered by: Maulana Sibghat Ullah

Question

I have some assets and I recently bought a house as well in the UK through a conventional mortgage. It is my understanding that the Zakat is due to be paid net of obligations. When I calculate the zakat next time around, do I need to factor in the loan/mortgage that I have on the house (as the house is not considered for the purpose of Zakat computation)?

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

The preferred opinion, only short-term loans will be deducted and not long-term loans.[I] Therefore, with regards to your question, only the monthly mortgage repayments should be deducted from your zakatable assets and not the total mortgage.

Only Allah knows best.

Written by Maulana Sibghat Ullah

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

[i] Radul Mukhtar Kitab ul Zakat Page 505, Maktabat ul Waheediya:- the temporary loan will be included in the zakat.