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The following is a verbatim reproduction of an article by a Deeni Student of the U.K.

“In a classic case of Juhala seeking and obtaining Fatwas from even worse Juhala, the garbage below was written and published by the self-appointed Mufti, Muadh Khan, in response to some queries posed on a website called "Muftisays". I hope Hazrat is able to make a quick perusal.


Shariah Problem with Islamic Mortgage:

The problem with Islamic mortgage isn’t what a famous Mufti keeps moaning about. The problem isn’t even what the Scholars of Karachi keep castigating Mufti Taqi Usmani (HA) about!

The Islamic problem is that Islamic mortgage is essentially two contracts rolled into one:

  1. Contract 1:Bank actually owns the property and the deed is in their name.
  2. Contract 2:Bank rents the property to you but it is not a traditional rental agreement and part of your payment goes toward the capital loan (i.e. price of the property).

There are many Scholars who “correctly and rightly” say that you cannot have multiple contracts for the same transaction. There is no need to look beyond this problem into interest or (lack of interest), this entire issue is deeply problematic to begin with.

Sceptics are right in the sense that “Islamic mortgage” is a legal jargon filled transaction designed to get around the traditional “Haram Mortgage” transaction. In reality and in effect, the net transaction is no different. Let me illustrate this to you by an example, suppose you want to borrow money from me to get a car, I can do this in two ways. Suppose that the car costs 5,000 US Dollars here are two ways:

  1. Interest Based:I can lend you 5,000 USD and you pay £153.89 for 36 months at the rate of 7%
  2. Service Based: I can lend you 5,000 USD BUT I say for my Services you need to pay me back 5,540.20 and you pay £153.89 for 36 months

1 is Haram

2 is not directly Haram as long as we both agree and come up with some legal mumbo-jumbo

Mufti Taqi Usmani (HA) responds:

15 years ago this was put to Mufti Taqi Usmani Saheb (DB) that isn’t Islamic Mortgage (HSBC) just legal mumbo-jumbo to get around the Interest prohibition? Mufti Taqi Usmani Saheb (DB) replied that Islamic Mortgage isn’t perfect but it is for the convenience of Muslims to avoid Haram, it is the best solution we have at this time when we don’t control the financial markets and world economy and there is always room for improvements.

A student of Mufti Taqi Usmani (DB) answered by using this example:

Suppose while driving in UK you want to turn right (or left in US and the example will make sense). You see a Petrol Station (Gas station for US) and instead of going to the traffic lights and turning right properly, you cut across the station and save time and keep on going. This isn’t strictly illegal but it may be not the right behaviour or up to ethical standards of driving.

Islamic Mortgage isn’t “Strictly Haram” but it isn’t agreed upon “Halal” according to all scholars either. This is where Taqleed comes in, I had this argument on Sunniforum with the then (student and now Mufti) Abu Hajira. As a layman Muslim, Allah Ta’ala commands you to make Taqleed so if you choose to follow someone like Mufti Taqi Usmani (HA) and get an Islamic Mortgage or any other (well known and trusted scholar for that matter), there is no sin on you!

This is the bottom line you need to grasp!


What is in it for the Banks?

Banks are in there to make money and Islamic (banking) or Mortgages offers the following advantages:

  1. Statically,  Muslims are financially stable with stable families and pay loans back because it is bred and drummed into Muslims to look after their families so loans to Muslims are less risky.
  2. Muslims have close knit families so they are able to pay greater down payment and families often bail those out who are in trouble
  3. Muslims are a financial powerhouse in the world and ready to invest
  4. MOST IMPORTANT: Banks have to show a reserve against which they are given permission to lend against. Islamic Mortgages means that they have to ring-fence certain money which CANNOT be invested into what you would deem "high risk investments" and this secures their bottom line. So by investing in "Islamic Banking" they are able to leverage this amount TWICE

Muslims are their own worst enemies!

There was a time when HSBC, IBB, Bank of Kuwait etc were all competing in the UK for Muslim businesses. Barclays was also trying to get into the market but BECAUSE Muslims are “stupid” and short-sighted they didn’t kept discussing Fatwaas and market has now narrowed with HSBC and Barclays falling out. This means that you have niche banks in the business and with the lack of competition, customer lose out. Scholars should have sat together and worked out better contracts and agreed with each other for the sake of British Muslims INSTEAD

You have some scholars who have made a killing by earning money WHILE others are crying Haram, Haram and normal Muslims are confused!


WHAT SHOULD HAVE HAPPENED is that Muslims should have made sure that banking scrap and fight for their money (like what happens in the traditional market) and ensured that Islamic Mortgage is diversified as a viable product for everyone. Islamic Banking is just another form of ethical banking and that is why world’s top banks are offering it worldwide.

Islamic Mortgage is a niche product which is limited (or we have made it limited) and the competition is making it more expensive when it was actually cheaper.” (End of the Jaahils appraisal)


The Student Commenting further says:


It seems Muadh Khan, along with those of his ilk, are becoming increasingly flustered with the increasing number of sincere  brothers and sisters who are having to turn eventually to the Majlis, simply because there does not appear to be any other Ulama proclaiming the Haqq loudly, clearly, and without forked tongues. Allah Ta'ala works in wonderful and mysterious ways. The unprecedented Satanism propounded by the Ulama-e-Soo' of this worst of eras, along with the masses of Ulama who are completely silent in the face of such evil, is actually becoming a major cause for the sincere layman, concerned with the Ummah and the Haqq, having no option but to turn to the Majlis for succour.


Displaying ever-growing desperation in his insidious attempts to discredit the Majlis, Muadh Khan aims and misfires regular potshots, piping the same monotonous tune regarding the Majlis's "many errors", whilst never ever specifying exactly what those "many errors" actually are. This appears to be a common hallucination symptom stemming from an acutely allergic reaction to the Haqq suffered by severely diseased Nufoos. The very same diseased individual who hallucinates "many errors" in the Haqq of the Majlis is able to write and publish the lengthiest and detailed defence online of the satanism of Tariq Jameel, whose "many good deeds" include free-mixing with women and shamelessly advertising such free-mixing on camera (including posing side by side with a Kaafir woman whilst holding a small plaque together), extolling past sins in front of the Juhala masses, treating as brothers in Islam those who explicitly brand and treat the Sahabah (radhiyallahu anhum) as Kaafirs, etc. etc. Something is truly amiss with the brain cell of this individual, and those of his ilk. (End of the Article of Haqq)

The Student has adequately taken the moron bogus ‘mufti’ to task. Our further comment will therefore be superfluous.

7 Sha’baan 1439 (24 April 2018)


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