A recent study carried out by Pegasus Insight for StrideUp has illuminated the strong inclination of UK Muslims towards financial products that are in accordance with their religious principles. The study disclosed that an astonishing 76% of UK Muslims consider Shariah-compliant financial products to be of great importance, with 41% regarding them as ‘extremely important’.
Even more compelling is the fact that 82% of UK Muslims find Islamic Finance to be in harmony with their values and beliefs. Within this percentage, 65% of those who currently have traditional mortgages expressed their preference for Islamic Finance products for their future property finance.
In response to this increasing demand, StrideUp has introduced an innovative home purchase plan (HPP) product specifically tailored to cater to the requirements of Muslims who wish to avoid interest-based transactions due to their religious beliefs. This pioneering product not only enables homeownership without compromising Islamic values, but has also captured the interest of non-Muslim customers due to its equitable features.
The underwriting process at StrideUp has been meticulously designed to accommodate a diverse range of clients, including foreign nationals with a limited deposit and one year remaining on their visa, individuals receiving gifted deposits, self-employed applicants with last year’s income, and contractors subject to specific assessment criteria.
Sakeeb Zaman, the CEO at StrideUp, has emphasized the significance of Shariah-compliant finance products for the Muslim population. He highlighted the absence of interest in Islamic finance products, which is prohibited in Islam, and noted that most Muslims perceive this as a more ethical option that is in line with their values. Zaman underscored that their research indicates these products are highly esteemed in the community.
Addressing the challenge of adoption, Zaman noted that the lack of readily available information about home purchase plans poses the greatest barrier to greater uptake among the Muslim population. He emphasized the pivotal role that brokers play in assisting Muslim clients in accessing the products required for purchasing a new home or refinancing an existing property.
The study and subsequent product launch by StrideUp bring to the fore the increasing demand for Shariah-compliant financial products within the UK Muslim community. It underscores the importance of financial institutions and service providers catering to the specific needs and values of diverse demographic groups within society.
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