United National Bank Islamic Mortgages

 

United National Bank Limited launched its first Islamic product aimed at Muslim customers in the United Kingdom in 2003.
The UNB Islamic Mortgage was the first diminishing ownership Shari’ah-compliant mortgage product in the UK, according to Norton Rose, the international law firm. Norton Rose associate Mohammed Paracha says: “UNB has taken a proactive approach to its product development programme. This is the first Ijara (lease) based product to be launched in the United Kingdom that complies with the Shari’ah concept of diminishing ownership but which also retains the same level of risks as a standard Ijara mortgage.  The approach taken is far more acceptable from a Shari’ah perspective and avoids breaching rules of amanah (trust).”
The product will be available through UNB branches throughout the UK.
Norton Rose has been involved in the development of the retail Islamic banking sector for many years. Paracha is a member of the Bank of England Working Group which has been working with many Government departments in seeking to remove various legal and regulatory barriers that prevent viable Islamic mortgages from being developed.

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