Fortunately, several lenders have created specialist Islamic mortgages because of the growing demand for Sharia-compliant home purchase plans in the UK.

Because some of these products were complicated, those of you taking them out used to have to pay Stamp Duty twice: once when the bank bought a property and again when the ownership was signed over to you 25 years later. Recent UK tax changes have seen this abolished.

Ahli United Bank 

The Manzil Service

Uses principles of Murabaha and Ijara. Buy-to-let options are available.

Murabaha procedure: The bank buys the property; you immediately buy it back at a higher price and the property is registered in your name. Initial contribution is at 17%, then monthly smaller payments thereafter.

Ijara procedure: More flexible than Murabaha. The bank buys the property. You buy it in monthly instalments, with a rental fee added. At the end of the leasing period you fully own the property.

HSBC Amanah

Amanah Home Finance

Based on Diminishing Musharaka - joint ownership of the property between you and HSBC. The financing rate is never more than 2.5% above UK base rate. Your payment consists of a monthly contribution payment towards the price of the property, rent and other charges (service charge, ground rent, insurance). Legal fees included in application fee. The usual property purchase fees apply.

Lloyds TSB

(In conjunction with Bristol & West and ABC International Bank)

Alburaq

Sharia-compliant home finance service. Uses the principles of Ijara with Diminishing Musharaka - joint ownership by you and the lender. You get finance for up to 90% of the property’s value (your deposit must be at least 10%). You have a choice of standard or fixed options and there are no penalties or tie-ins. The financing rate is based on a benchmark comparison rate of 4.59%. Usual legal, valuation, land registry, single Stamp Duty and arrangement fees apply.