UK guide to halal home finance providers, rates, eligibility, and process, covering Gatehouse, StrideUp, Offa, Wayhome, and more, with clear steps and practical comparisons for confident decisions.
A straightforward guide to halal home purchase in the UK
Finding a home you love is one thing. Finding a way to buy it that aligns with your faith and your finances is another. Islamic home finance in the UK has matured in recent years, giving you practical, Sharia-compliant choices that avoid interest and focus on shared ownership. Instead of a loan with interest, you and the provider purchase the property together. You pay rent on the share you do not yet own and gradually increase your ownership over time. It is transparent, contract-based, and designed to remove riba while keeping the path to homeownership clear and predictable.
Today, Gatehouse Bank is the most established name for Home Purchase Plans, with competitive pricing and up to 80% loan-to-value on residential and buy-to-let properties across England and Wales. Their reach includes UK residents, expats, and international clients, which makes them a practical starting point for many buyers. Alongside Gatehouse, StrideUp offers a co-ownership model that starts from a 10% deposit, accepts gifted deposits, and is designed to help first-time buyers build equity step by step. Wayhome brings a shared-ownership alternative that has been positively reviewed for its flexibility and interest-free structure.
New specialists are also strengthening the market. Offa, an Islamic fintech, gained FCA authorisation in 2025 and focuses on swift, Sharia-compliant decisions through experienced property finance experts. At the premium end, Kuwait Finance House serves larger, often London-based acquisitions with Home Purchase Plans tailored to high-value homes. Pfida is emerging as another halal provider to consider as competition broadens. Meanwhile, Al Rayan has withdrawn its UK Home Purchase Plans, which concentrates demand around current leaders and newer entrants.
Policy has become more supportive too. UK government reforms have clarified how Islamic purchase structures are treated for tax, helping level the playing field with conventional mortgages. With only a few thousand Islamic home finance accounts outstanding, the UK market has room to grow, and providers are responding with clearer products, modern digital journeys, and stronger broker networks. If you want an ethical, interest-free route to owning a home, now is a good time to compare your options carefully and move forward with confidence.
Who this guide will help
This guide is for UK consumers who want a halal route to homeownership without interest, whether you are a first-time buyer, moving home, refinancing, or investing in buy-to-let. It will be useful if your deposit is modest, your income is complex, or you are an expat or international buyer considering property in England and Wales. If you prioritise ethical finance and transparency, you will find practical detail here on how the main providers work, what they cost, and how to assess affordability and risks before you apply.
Your main choices today
- Gatehouse Bank - Leading Home Purchase Plans up to 80% LTV for residential and buy-to-let, with options for UK residents, expats, and internationals.
- StrideUp - Sharia-compliant co-ownership with rent, from 10% deposit, gifted deposits accepted, supports first-time buyers and remortgaging.
- Offa - Newly authorised Islamic fintech offering fast, specialist decisions on Sharia-compliant home finance.
- Wayhome - Interest-free shared ownership model that lets you gradually increase your stake without a conventional mortgage.
- Kuwait Finance House - Home Purchase Plans for higher-value residential properties, often focused on London and premium markets.
- Pfida - Growing halal provider focused on transparent, Sharia-compliant property purchase solutions.
- Willow Private Finance (broker) - Whole-of-market access to Sharia-compliant lenders and scholars, helpful for complex or high-value cases.
Choose a provider for day-to-day service, and consider a broker for complex scenarios or when you want to benchmark pricing across the market.
What it could cost and what it means for you
| Aspect | What to expect | Typical range or example | Key risk mitigants |
|---|---|---|---|
| Initial deposit | Minimum stake to start co-ownership | From 10% with some providers | Save earlier, use gifted deposits if allowed |
| Monthly payments | Rent on provider’s share plus acquisition payments | Varies by property price and share owned | Fix periods where available, budget buffers |
| Fees | Arrangement, valuation, legal, and product fees | Often similar to mortgages, sometimes lower | Request a full fee illustration upfront |
| LTV limits | Maximum share the provider will fund | Up to 80% with leading banks | Larger deposit reduces monthly outgoings |
| Early sale or exit | Costs if you sell or refinance early | Fees or notice periods may apply | Check early exit terms before you commit |
| Rate exposure | Rent can be linked to benchmark rates | Can rise or fall over time | Consider fixed rent periods if offered |
Strong affordability checks are standard. Expect full income and expenditure assessments to ensure your plan remains sustainable if rates or costs change.
Can you qualify
Eligibility varies, but there are common threads. Most providers require the property to be in England and Wales and suitable for residential use or buy-to-let, with standard construction and clear legal title. Deposit levels typically start from 10% with some co-ownership models, while banks offering Home Purchase Plans may fund up to 80% of the purchase price. Affordability is assessed on your income, commitments, and verified outgoings. Employed, self-employed, and multiple income types may be considered, and some providers accept gifted deposits from close family subject to due diligence. First-time buyers are welcome, and expats or international clients may be eligible with additional documentation.
Your credit profile should demonstrate responsible borrowing. You do not always need perfect credit, but serious recent issues will limit options. The property must meet Sharia criteria, and the legal documentation will reflect co-ownership and rent rather than interest. If your situation is complex or high value, a whole-of-market Sharia broker can coordinate with scholars and lender underwriters. Kandoo can connect you to regulated advisers for clear, side-by-side comparisons before you proceed.
How a halal purchase typically runs
- Define budget, deposit, and location in England or Wales.
- Get a decision in principle based on affordability checks.
- Choose provider or broker and confirm Sharia structure.
- Instruct solicitor experienced in Home Purchase Plans.
- Submit full application with ID, income, and bank statements.
- Property valuation and legal due diligence are completed.
- Receive offer, review rent and acquisition schedule.
- Exchange, complete, move in, and start building equity.
Weighing it up at a glance
| Consideration | Pros | Cons |
|---|---|---|
| Sharia compliance | Removes interest and aligns with faith | Requires careful contract review |
| Accessibility | Options from 10% deposit, gifted deposits | LTV caps can limit purchase price |
| Market choice | Multiple providers and brokers | Fewer options than conventional mortgages |
| Flexibility | Gradual equity build, potential to staircase | Early exit fees or notice may apply |
| Ethics | Avoids haram investments and interest | Rent can still change with benchmarks |
Points to check before you proceed
Take time to read the full Key Facts and Sharia certificates so you understand how rent is set, how often it can change, and how your acquisition payments reduce the provider’s share. Ask for a detailed completion cost estimate, including legal fees, valuation, and any product fees. If you plan to staircase quickly, check whether extra acquisition payments are allowed and if there are fees or limits. For buy-to-let, confirm rental coverage requirements and any property type restrictions. If you are an expat or international buyer, ask for timescales and exchange rate considerations. A regulated adviser can compare whole-of-market terms so you can balance cost, flexibility, and long-term suitability with confidence.
Alternatives to consider
- Conventional mortgage with a focus on ethical lenders and screened investment policies.
- Housing association shared ownership with staircasing over time.
- Save for a larger deposit to reduce monthly outgoings and risk.
- Family support or gifted deposits structured within lender rules.
- Rent-to-buy or gradual homeownership schemes available regionally.
- Guarantor or joint borrower sole proprietor arrangements where suitable.
Frequently asked questions
Q: How is Islamic home finance different from a mortgage? A: You buy the property jointly with the provider and pay rent on their share. There is no interest. You acquire more ownership over time until you own it outright.
Q: Who are the main UK providers right now? A: Gatehouse Bank, StrideUp, Offa, Wayhome, Kuwait Finance House, and Pfida are active. Al Rayan has withdrawn from UK Home Purchase Plans, so comparisons focus on current leaders and new entrants.
Q: What deposit do I need? A: Some options start from 10%. Others require more, particularly for higher-value properties or if your credit profile is limited. A larger deposit usually lowers monthly payments.
Q: Can expats or international buyers apply? A: Yes, selected providers accept expats and international clients for properties in England and Wales, subject to additional documentation and enhanced checks.
Q: Are monthly payments fixed? A: Not always. Rent can be variable or fixed for a period. Check how the rent is set, review any benchmark links, and confirm when and how it can change.
Q: Do I need a broker? A: Not required, but helpful for complex cases, high-value purchases, or when you want to benchmark multiple providers quickly with support from Sharia scholars.
Q: What if I want to sell early? A: You can usually sell, but fees, notice periods, or minimum terms may apply. Review early exit conditions before you commit.
Ready to explore your options
If you are comfortable with the basics, the next step is a tailored comparison. Kandoo can introduce you to regulated advisers who work with Sharia-compliant providers across the market. You will get clear affordability checks, side-by-side illustrations, and practical timescales so you can proceed with confidence.
Important information
This guide is for general information only and is not personal advice. Product availability, pricing, and eligibility can change. Always review full documentation and seek regulated advice before making any financial decision.
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