"Allah has permitted trade and forbidden interest (riba)."
— Quran 2:275. Islamic mortgages replace interest with a co-ownership and rental structure.
1
The bank co-buys the property with you
Instead of lending you money, the Islamic bank purchases the property jointly with you. Your deposit is your initial ownership share. If you put down 20%, you own 20% from day one and the bank owns 80%.
2
You pay two things each month
Rent — on the bank's share of the property (this is how they make their profit, not interest). Acquisition payment — which buys a slice of the bank's share every month, increasing your ownership percentage over time.
3
Your ownership grows, your rent falls
As you acquire more of the property, the bank's share shrinks — and so does the rent you owe on it. This is called Diminishing Musharakah (diminishing partnership). By the end of the term, you own 100% and owe nothing.
4
Why does it cost more right now?
Islamic lenders (mainly Gatehouse Bank and StrideUp in the UK) have fewer customers and higher admin costs than mainstream banks, so their rental rates are typically 1–2% higher than conventional mortgage rates. This gap is narrowing as the market grows. At equal rates, an HPP costs exactly the same as a conventional mortgage.
5
Is it truly halal?
UK Home Purchase Plans (HPPs) are structured under a specific legal framework created for Islamic finance and are FCA-regulated. Gatehouse Bank and StrideUp are both considered halal by mainstream Islamic scholars. Consult your imam if you have personal doubts — the structure is widely accepted, but scholars differ on some fine details.
This calculator is for education only. Always speak to an FCA-regulated Islamic mortgage broker before making any financial decisions. Providers: Gatehouse Bank · StrideUp · Islamic Finance Guru
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🇬🇧 Shariah-compliant finance · UK · Rates updated May 2026
UK Islamic mortgage calculator — compare costs, affordability & fees
A free, honest side-by-side calculator for UK Muslims comparing Islamic Home Purchase Plans with conventional mortgages. No signup. No ads. No fluff.
How quickly you pay off the property — year by year
Islamic HPP balance
Conventional balance
View year-by-year figures
Year
Islamic HPP
Conventional
Cumulative Diff
Cumulative extra cost of going halal
Running total of additional cost (or saving) of the Islamic HPP vs conventional
Halal costs more
Halal costs less
Stamp duty & buying costs
Stamp duty & upfront buying costs
Stamp duty to pay
—
Based on current 2026 UK rates
Other upfront costs (estimates)
Solicitor/conveyancing—
Survey (HomeBuyer Report)—
Searches & Land Registry—
Typically £500-2,000. Can often be added to loan.
Some lenders charge £100-300 upfront
Typically £300-500 if using a broker
Total upfront costs—
Estimates based on typical UK 2026 rates. Actual costs vary by provider and location.
Can I afford this?
Include existing debts (optional)
Debts reduce your maximum borrowing. This is an estimate only.
Conventional max borrow
—
Salary × 4.5
Gatehouse max borrow
—
Salary × 4.75
StrideUp max borrow
—
Salary × 6.5
Your loan amount
—
Price minus deposit
Enter your salary above to see if you can afford this property.
Methodology: Estimates use salary × multiplier (4.5× conventional, 4.75× Gatehouse, 6.5× StrideUp). Debt impact uses a simplified £3 reduction per £1 annual debt—real lenders use stress tests and specific DTI (debt-to-income) thresholds. Self-employed applicants typically see reduced multipliers. These are rough estimates only—consult a mortgage adviser for accurate figures based on your credit history and circumstances.
What if I overpay?
Extra monthly payment£0
Months saved
0
Off your term
New term length
—
Years and months
Rent saved
£0
Less profit to bank
How this works: Extra payments buy more of the bank's share faster. As your ownership grows, the rent on the bank's portion decreases. This calculator keeps monthly payments constant, paying off the property sooner.
What if I remortgage?
Compare switching from a conventional mortgage to an Islamic HPP. Note: No stamp duty applies to remortgages.
Current mortgage balance£250,000
Current interest rate5.5%
New Islamic rate5.25%
Remaining term20 years
Current monthly
£1,719
Conventional payment
New monthly
£1,684
Islamic HPP payment
Monthly difference
£35
Less per month
Total cost difference
£8,400
Over remaining term
Break-even point
4y 9m
When savings cover £2,000 switching costs
Typical remortgage costs: Expect around £1,500-£3,000 in fees including arrangement fees (£500-£1,500), valuation (£150-£400), and legal fees (£500-£1,000). The break-even calculation assumes £2,000 in total costs.
UK Islamic mortgage providers (2026)
Gatehouse Bank
Most established
From 5% deposit. Up to 80% LTV. England & Wales. FCA-regulated. Competitive pricing.
StrideUp
Good for first-time buyers
From 10% deposit. Gifted deposits accepted. Up to 6.5× income. Complex incomes considered.
Offa
Fast decisions
Islamic fintech with 1-hour decisions. Shariah-compliant residential finance. FCA regulated.