Financial Secretary to the Treasury, Sajid Javid announced in February that banks including the Islamic Bank of Britain will offer Home Purchase Plans (HPP) meaning that Islamic mortgages compliant with shari’a law will be available as part of the Government’s Help to Buy scheme.
Bishop Nazir-Ali noted that this step makes the Government itself subject to shari’a law. HPP will allow Muslims to buy property without paying interest, since paying or receiving interest is against Islamic law. Muslim borrowers will pay monthly instalments consisting of rent and an acquisition payment.
Last year, David Cameron said Britain would become the first non-Muslim country to unveil a new Islamic index and offer Islamic bonds. Speaking at the World Islamic Economic Forum, he said: ‘I want London to stand alongside Dubai as one of the great capitals of Islamic finance anywhere in the world’.
