The Applicability of the Islamic Mortgage Contract Under English Law

Abstract

The Islamic financial market is one of the fastest growing markets, not only in the Muslim world, but also in the European countries, and particularly in England (Wilson 2007, p 10). This article will critically analyse one of the best known Islamic financial contracts: the Islamic mortgage contract. It will look at its background and origin, how it came to existence, and whether it is originally an Islamic concept. In addition, this article will discuss what the Qur’an says about this contract, and the main terms and conditions that apply to it. This article will then critically examine the applicability of this contract in England under English law, focusing on the differences between the Islamic mortgage contract and the conventional English mortgage contract. Finally, this article will adopt a new analogical method based on the Qura’nic perspective to judge the applicability and the acceptability of the Qur’an verses within the English legal rules.