Friday, June 09, 2006

Fatwa regarding the Ansar Housing Ltd. scheme - by Shaykh Haitham al-Haddad

All praise and thanks are due to Allah, the Lord of the worlds. Peace and blessings be upon our Prophet, Muhammad, his family and all his Companions.

Since the publication of the fatwa regarding the impermissibility of the Islamic mortgages offered by some interest-based banks in May 2004, I have received several questions relating to the various facets of Islamic home finance in the UK. Some of these questions are enquiring about the availability of a true Islamic model to purchase homes in the UK, while others are concerned with the permissibility of some other schemes proffered by conventional banks further to those mentioned in the original fatwa.

In this short fatwa, I would like to identify a scheme that I am confident provides a good model for true Islamic Finance. This scheme is provided by Ansar Housing Ltd. in Manchester ( and it is, so far, the best scheme that I have encountered. Given that Islamic guidelines concerning finance are fulfilled as far as is possible under present UK regulations, we can say confidently that it is an ideal scheme for Islamic home financing.

The scheme adopts a unique system of joint ownership that fulfils the aims and objectives of Islamic finance. I urge both Muslims and non-Muslims to study it objectively and thoroughly in order to realise how true Islamic finance deals fairly with all parties to a transaction, both the weaker and the stronger. It is also important to notice how such a scheme ensures that the customer does not bear financial burdens beyond his ability, which is a major factor encouraging the over-indebtedness of so many individuals today. Moreover, this scheme does not link together several contracts nor does it impose obligations upon the customer in such a way that the end result is indistinguishable from an interest-based loan secured on the customer’s home.

In conclusion, I would like to encourage Muslims and non-Muslims who dream of building a fair society, free from oppression by debt and its detrimental consequences, to try their best to ensure that schemes such as this are successful.

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sall-Allaahu ‘alayhe wa sallam) and his family and his companions

Haitham Al-Haddad

12 Jamda al-Thani 1427

8th June 2006.


Blogger Tariq said...

I am amazed that you defended a program without giving the reader any idea about what were defending. Like any other zealous and self-righteous scholar you made claims about protecting the weaker from stronger and having a house financing which is truly free of interest. I am very interested to hear from you about the definition of interest that you have in mind and your idea of sharing the burden equally

10:26 pm  

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