interest

Purchasing a house on mortgage

Q: About buying a house in the UK on interest (sood) mortgage. One mortgage is standard and one is Islamic. In stranded the bank will show you how much interest you will pay and in Islamic the bank will show you how much rent you will pay. But many people and Ulama say that Islamic mortgage is also same as standard mortgage. Because you want to buy house that you don’t want to pay rent to council or to the owner then why should you pay it to Islamic mortgage and one of my friends has spoken to a mortgage adviser about both mortgages and he said that both mortgages are the same, the only difference is in the name.

Interest bearing loan

Q: I have taken an Islamic Shari'ah loan from standard chartered bank Bahrain. I want to go for umrah. Tell me, is my loan halaal or haraam? Can I go for umrah or not? If the loan is haraam, then I have done a major sin. How can I  face my Allah and Hazrat Muhammad (Sallallahu Alayhi Wasallam)? Please answer me me thoroughly.

Mortgage

Q: I live in America, and it is impossible to buy a house here without a mortgage from the bank. The bank charges interest on the mortgage. Is it permissible to buy a house on mortgage?

Provident fund

Q: Is a provident fund which is half collected from the employee’s salary and half deposited from the company/government on behalf of the employee permissible or is it regarded as interest? Is investing in a provident fund permissible?