Sharia-compliant banking and halal mortgages

3/4/2022 3:47 PM
a graphic depicting financial products and services

Recently we caught up with Gatehouse Bank to find out more about Sharia-compliant and ethical banking, including halal mortgages.

In the following video, Chief Risk Officer Usman Chaudry gives us the lowdown on Sharia-compliant banking and how banks ensure their products and services are halal.

"Islamic banking is a Sharia-compliant alternative to a traditional bank. This means the bank operates in a way that is derived from Islamic teachings and encourages fair play — to promote fairer more socially responsible ways of conducting financial affairs," says Usman.

In the second video, Head of Direct Finance Gemma Donnelly talks about halal mortgages and what similarities and differences they have with conventional mortgages.

"Sharia purchase plans are similar to conventional mortgages in a number of ways, for example both will ensure the customer is able to acquire the property that they choose," says Gemma.

"There are also some key differences. With conventional mortgages, for example, the customer is charged interest, which is forbidden. With Sharia purchase plans, the customer is charged rent on the bank's share of the property," she adds.

In the final video, CSR Manager Geraldine Burnett tells us about the importance of responsible banking and how it aligns with Sharia finance principles.

"Responsible banking is a big topic. It covers the way banks treat their customers, how they support the communities around them and the impact their financing choices have on the environment," says Geraldine.