Muslims caught in property trap

Islam regards charging interest as a sin

A special mortgage making it easier for Muslims to buy their own house has been set up in the North West.

Currently, many Muslims cannot get a mortgage or open a bank account because their religion regards charging interest as a sin.

It means many face a dilemma when trying to save with a bank or buy a house.

However, a Manchester-based finance company has started offering "Halal" mortgages.

Abid Satwilkar: Taking on a "Halal" mortgage

The term Halal usually refers to meat which is prepared in a traditional Muslim manner

Islam bans charging interest - a system it says makes the rich richer and the poor poorer.

Under the deal, investors buy houses on behalf of clients who then pay the original debt back, plus a monthly rent.

Abid Satwilkar is among those Muslims who have turned to Ansar Finance.

He said: "In terms of getting a loan, interest from transactions of any kind is forbidden in Islam and the only way we had was to go for a mortgage based on interest.

"We needed an alternative that was Islamic."

So far, High Street banks are not offering similar deals.