The Growing Preference for Islamic Finance Products Among UK Muslims

A recent study conducted by StrideUp has revealed that a substantial proportion of Muslim mortgage holders in the UK are expressing a preference for Islamic Finance products. According to the CEO of StrideUp, Sakeeb Zaman, the research emphasizes the ethical considerations and alignment with religious values that are propelling the popularity of these financial products within the Muslim community.

The research discovered that 76% of UK Muslims deem it important to have financial products that are in accordance with their religious values, with 41% indicating that this is of utmost significance to them. Additionally, an overwhelming 82% of UK Muslims believe that Islamic Finance products resonate with their values and beliefs. Specifically, 65% of Muslim conventional mortgage holders have expressed their preference for Islamic Finance products when seeking property finance in the future.

One of the significant contributing factors to this preference is the principle of avoiding interest, which is prohibited in Islam. Islamic Finance products, such as the home purchase plan (HPP) offered by StrideUp, provide a viable solution for Muslims who wish to become homeowners without compromising their religious beliefs.

Sakeeb Zaman highlighted the significance of Shariah-compliant finance products for the Muslim population and underscored the absence of interest as a key differentiator between Islamic finance and conventional products. He emphasized that the ethical considerations associated with Islamic Finance are highly esteemed within the community.

Despite the growing demand for Islamic Finance products, Zaman also pointed out that the lack of readily available information about home purchase plans presents a barrier to greater uptake. Therefore, mortgage brokers play a pivotal role in assisting Muslim clients in accessing the products that align with their values, whether by providing direct advice or referring them to a team of in-house advisers at StrideUp.

Zaman noted that StrideUp collaborates with a diverse network of mortgage brokers, who are instrumental in facilitating access to Islamic Finance products for their Muslim clients. In recognition of their contribution, introducing brokers receive a procuration fee for their role in connecting clients with Shariah-compliant financial solutions.

In conclusion, the findings of the research underscore the increasing demand for Islamic Finance products among UK Muslims, driven by a desire for financial products that align with their religious values. The insights provided by StrideUp’s study serve as a vital resource for the industry, shedding light on the significance of Islamic Finance and the role of brokers in facilitating access to these products within the Muslim community.